Farallon Capital Management

Farallon Capital Management, L.L.C. is a global institutional investment management firm founded in 1986 and has been registered with the SEC as an investment advisor since 1990. Farallon Capital manages approximately $28 billion in capital for institutions, including college endowments, charitable foundations, pension plans and sovereign wealth funds, and for high net worth individuals. Farallon Capital is headquartered in San Francisco and has offices in London, Singapore, Hong Kong, Tokyo and São Paulo, and as of 2019 employs over 200 employees. Farallon Capital seeks investments across asset classes and around the world through a process of bottom-up fundamental research and analysis emphasizing capital preservation. Farallon Capital’s investment strategies include Credit Investments, Long/Short Equity, Merger Arbitrage, Risk Arbitrage, Real Estate Investments and Direct Investments. Investment ideas compete for capital based on in-depth, critical assessment of specific risks and rewards. Risk is monitored and managed through rigorous and thorough analysis of each investment and, at the portfolio level, through risk management analytics and overlay and tail-risk hedging. Farallon’s Credit strategy invests in credit instruments which they believe are mispriced, or inexpensive relative to their underlying risk. The strategy is largely event-driven, involving complex distressed special situations, corporate restructurings, bankruptcies and liquidations. Farallon’s Long/Short Equity strategy primarily invests in common stock that is believed to be underpriced or overpriced relative to its intrinsic or fundamental value, based on an in-depth, differentiated assessment of a company and its market compared to other market participants. Investments also may be made in anticipation of events, changes or catalysts. Market risk and other risks may be hedged through a variety of financial instruments, including options, derivatives and short sales. Farallon’s Merger Arbitrage strategy is focused mainly on corporate takeovers. Each investment seeks to capture the spread between the current and projected values of securities of companies involved in a merger or acquisition. To employ this strategy, the firm typically establishes a long position (generally with a purchase of common stock) in an announced takeover candidate and, if the proposed merger or acquisition is structured as a share-for-share deal, take a short position in the acquiring company. Farallon’s Risk Arbitrage strategy generally consists of investments in publicly traded companies involving theoretical arbitrages often resulting from what the firm sees as inefficiently priced trading markets. The theoretical arbitrage investments included in this category may include investments in holding companies and their subsidiaries, or securities trading in separate markets or on separate exchanges, hedged with financial instruments in expectation of convergence between market prices and theoretical value. Farallon’s Real Estate strategy pursues generally illiquid investments in real estate-related assets, especially in cases where improvement of the asset, leasing and addition of management expertise can add value. The firm invests opportunistically across a broad range of real estate assets, in various parts of the capital structure, with a focus on office, retail, multifamily and industrial assets. Finally, Farallon’s Direct Investments are typically longer-dated, less liquid private market transactions and may be in various parts of the capital structure. The firm generally looks for inefficiently financed situations where they can facilitate a recapitalization, or situations in which traditional institutional financial capital is not available. The firm is positioned to move quickly, providing timely, customized financial solutions. This strategy can include transitional financing in the form of senior secured and mezzanine loans, project and acquisition financing, non-performing loan portfolios, convertible debt, and event and growth equity.