PE firm Falcon House in talks to exit Indonesian hospitality brand Potato Head

Potato Head Singapore

Private equity (PE) firm Falcon House Partners is in talks to sell its existing stake in Indonesia’s lifestyle and hospitality brand Potato Head Family, according to people privy to the development.

Falcon House currently holds a 35 per cent stake in the company. Although the value of its stake could not be ascertained, DealStreetAsia has learnt that the PE firm is in the midst of finalising the exit process.

Falcon House and Potato Head did not respond to our queries regarding the potential exit.

Founded in 2009 by Ronald Akili and Jason Gunawan, Potato Head began as a single restaurant in Jakarta. Today, a prominent name in the Asian hospitality circle, it runs beach clubs and hotel chains in Hong Kong and Singapore, apart from Bali and Jakarta in Indonesia.

The brand is said to be planning to ramp up its presence across the world.

Falcon House’s investment in Potato Head in 2014 was among the investor’s early bets. Thereafter, the PE firm went on to back a bouquet of hospitality chains in the archipelago, including bakery and pastry chain The Harvest Group, Jakarta-based Chinese restaurant chain Ta Wan, and Ismaya Group, which operates multiple restaurants and lounges in the country.

Falcon House typically focuses on investments in the consumer industry with a ticket size ranging from $15 million to $25 million. In 2016, the firm closed its Indonesia-focused fund at $400 million, about 30 per cent higher than its initial target of $300 million.

We had earlier reported that the PE firm is in talks to exit its majority stake in Ta Wan and a significant minority stake in food ingredients manufacturer Haldin Pacific Semesta.

The food retail space in Indonesia is increasingly garnering investor interest and industry experts ascribe this burgeoning trend to the growing middle-class consumer population and untapped market opportunities beyond the capital city of Jakarta.

Apart from Falcon House, other investors who are betting big on the market with a special focus on food amongst other consumer-driven sectors include L Catterton Asia, Capsquare Asia Partners, Saratoga, Creador and Northstar Group.

DealStreetAsia had earlier reported that Capsquare Asia Partners is in the market to raise a corpus of $200 million for its latest fund Capsquare Asia Partners Fund II, and has already gathered over $70 million for its first close. The fund is said to be targeting a final close this year.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.