Indonesia’s Falcon House Partners to acquire stake in hospitality chain Ismaya Group

Thu May 25, 2017 - 11:51pm GMT+0000
Indonesia’s Falcon House Partners to acquire stake in hospitality chain Ismaya Group

After funding in Indonesian bakery and pastry chain The Harvest Group in early May, private equity firm Falcon House Partners is picking up a stake in Indonesia’s leading hospitality chain, the Ismaya Group.

Financial details of the deal were not disclosed, but it is likely that Ismaya Group has raised over US$20 to US$25 million via a stake sale to Falcon House Partners.

Previously, the Group has also reportedly ongoing discussions with several private equity players to raise fund, including Singapore-based L Catterton Asia.

Founded in 2003, the Ismaya Group operates multiple restaurants and lounges across Indonesia, such as Blowfish, Dragonfly, Skye, and Gia to name a few.

Additionally, Ismaya is also involved in hosting events – aiming to become the leader in Indonesia’s live music and entertainment field.

So far, the company has brought the likes of One Direction, Katy Perry, David Guetta, and Calvin Harris to perform in the country.

In 2016, the hospitality chain has secured about US$60 million in revenue.

Ismaya Group’s vision lies in building strong and everlasting lifestyle brands in the industry, it plans to open an additional 100 restaurants over the next 2 to 3 years both locally and internationally.

On the other hand, Falcon House Partners is a private equity and venture capital firm specializing in growth capital and middle market investments. It primarily invests in the consumer industry with a ticket ranging from US$15 to US$25 million.

The private equity firm recently closed its Indonesia-focused fund at US$400 million, over 30 percent higher than its original target of US$300 million.

It has been bullish in the Indonesia startup investment sphere, having also recently acquired a stake in a Jakarta-based Chinese restaurant, Ta Wan, alongside The Harvest and Ismaya Group.

The food retail space in Indonesia has been generating a lot of local and foreign interest over the past few years. Industry observers ascribe this to a largely untapped market beyond Jakarta and a growing middle-class consumer segment.

Apart from Falcon House Partners and L Catterton Asia, prominent investors in the food and other consumer-driven sectors in Indonesia include Capsquare Asia Partners, Saratoga, Creador, and NorthStar Group.