Farallon Capital Management is a global asset management firm that aims to achieve superior risk-adjusted returns through a process of bottom-up fundamental analysis that emphasizes capital preservation. The firm invests across strategies and asset classes, responding to changes in markets and the investment opportunity set. While its investment philosophy remains consistent, its execution is flexible, allowing capital to shift among strategies, asset classes, and geographies.
The strategy is largely event-driven, involving complex distressed special situations, corporate restructurings, bankruptcies, and liquidations.
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.
This strategy primarily invests in common stock that is 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.
To employ this strategy, Farallon typically establishes a long position 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 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.
This strategy generally consists of investments in publicly traded companies involving theoretical arbitrages often resulting from what Farallon sees as inefficiently priced trading markets.
Assets under management: $35 billion (as of December 31, 2020)