Falcon Edge Capital Targets $10 Billion+ Fund

Falcon Edge Capital Rebrands and Pursues $10 Billion Fund

Updated on December 7: Falcon Edge Capital has undergone a rebranding process, emerging as Alpha Wave Global. Simultaneously, the firm has successfully secured the initial portion of funding for its new $10 billion investment vehicle, designated Alpha Wave Ventures II.

The following details our initial reporting on this development.

Aggressive Growth Strategy

Falcon Edge Capital, headquartered in New York, has rapidly established itself as a particularly proactive investor in recent times. The company is now actively seeking to execute its largest investment commitment to date.

According to sources with knowledge of the situation, the firm is currently engaged in preliminary discussions to establish a fund exceeding $10 billion in size. It’s important to note that these discussions are ongoing and the ultimate fund size remains subject to change, as cautioned by several sources.

These sources have requested confidentiality due to not being authorized to disclose information regarding private negotiations. Falcon Edge Capital has not issued a public statement regarding this matter.

Global Investment Focus

A fund of $10 billion or greater would rank among the largest of its kind on a global scale. Falcon Edge intends to allocate this capital across various international markets, with a particular emphasis on Europe, as indicated by one source.

Firm Background and History

Established in 2012 by Rick Gerson, Navroz D. Udwadia, and Ryan Khoury, Falcon Edge Capital currently manages assets exceeding $5.5 billion, encompassing both public and private market investments.

Recent Investment Activity

The firm has demonstrated significant investment activity throughout the current year, particularly within the U.S. and India – the world’s second-largest internet market. In 2021 alone, Falcon Edge Capital has been instrumental in the creation of at least five unicorn companies, including CRED and Mensa Brands.

Further investment is anticipated, with social commerce startup DealShare reportedly in negotiations to secure over $200 million in funding at a valuation exceeding $1.7 billion, with participation from both Falcon Edge and Tiger Global, as reported by TechCrunch in late October. Additionally, edtech company Cuemath is seeking funding that would establish it as a unicorn, according to an informed source.

Counter-Cyclical Investment Approach

During a virtual conference earlier this year, Navroz D. Udwadia, a former professional tennis player and investment banker, articulated Falcon Edge Capital’s investment philosophy. The firm actively pursues opportunities when market conditions induce caution among other investors.

Conversely, Falcon Edge moderates its investment pace when widespread exuberance drives rapid dealmaking.

Increased Investment Volume

Data corroborates this strategy. According to CB Insights, the firm has completed over 40 private market investments this year, surpassing the total number of investments made in the preceding four years combined. Mr. Udwadia did not respond to a request for further comment.

Investment Stage Preferences

Falcon Edge Capital generally focuses on startups that are either in their early stages of development or demonstrating the potential to dominate their respective categories. Mr. Udwadia explained at a TiE conference that initial investments typically range from $1 million to $5 million, while later-stage investments can reach $50 million to $150 million. The firm generally avoids investments falling between these ranges.

Strategic Alignment with Tiger Global

As a “grandcub” of Tiger Global, Falcon Edge Capital has adopted many of the strategies employed by its predecessor. Similar to Tiger Global, Falcon Edge is known for its swift and decisive investment approach. Rather than conducting ad hoc evaluations, Falcon Edge comprehensively maps the competitive landscape and assesses the overall attractiveness of the industry sector.