Farallon Capital Management

What Farallon Capital Management does

Farallon Capital Management, L.L.C. is a privately held, partner-owned global institutional asset management firm founded in 1986 by Thomas Steyer and headquartered in San Francisco. The firm operates a multi-strategy hedge fund platform managing $44 billion in capital across six investment strategies: Credit, Long/Short Equity, Merger Arbitrage, Risk Arbitrage, Real Estate Investments, and Strategic Capital. It invests in both public and private assets worldwide through bottom-up fundamental analysis, with investment ideas competing for capital based on rigorous risk-reward assessment. Since Thomas Steyer's retirement in 2012, the firm has been 100% owned by partners working at the firm, with leadership succession completed in 2025 when Nicolas Giauque became Managing Partner and Chief Investment Officer alongside Executive Chair Andrew Spokes.

The firm serves institutional investors including college endowments, charitable foundations, and public and private pension plans, as well as qualified high-net-worth individuals. Distribution is conducted exclusively through direct institutional relationships managed by a global investor relations team operating from 7 offices across San Francisco, Hong Kong, London, New York, São Paulo, Singapore, and Tokyo, with senior regional leadership and localized regulatory authorizations (FCA, CVM). The firm is 100% partner-owned, with a 350+ employee base and an 18-year average tenure among senior investment team members.

Farallon generates revenue through management fees on assets under management and performance fees (carried interest) on investment returns, following the standard hedge fund compensation model. Recent strategic activity has been concentrated in private market deal flow, including the 2026 creation of Isemia (a €1.2 billion European healthcare real estate platform with TwentyTwo Real Estate), large PIPE/SPAC financings (Talawar Therapeutics, Freenome Holdings), and participation in sponsor-led consortia (Fujitec, Shapoorji Pallonji, At Home Group restructuring). The firm has also been expanding its Real Estate and Real Estate Credit capabilities since 2024, with senior hires sourced from Blackstone, Baupost, W.P. Carey, and Eastdil Secured.

Name

Farallon Capital Management

Legal name

Farallon Capital Management, L.L.C.

Website

https://faralloncapital.com

Company type

Private

Founded year

1986

Operating status

Operating

Headcount range

251–500 employees

Short description

Farallon Capital Management is a privately held, partner-owned multi-strategy hedge fund managing $44 billion across Credit, Equity, Arbitrage, Real Estate, and Strategic Capital strategies. Founded in 1986 and headquartered in San Francisco, it serves institutional investors and qualified individuals via 7 global offices.

Ownership category

akta.pro rank

Product category

Multi-Strategy Hedge Fund / Institutional Asset Management

NAICS

Portfolio Management and Investment Advice (52394), Other Financial Investment Activities (5239)

SIC

Investment Advice (6282)

akta.pro primary industry

Multi-Strategy — Single-Manager, Multi-PM (FSAHAFAB)

akta.pro secondary industry

Fundamental/Discretionary Equity Long/Short (FSAHAAAA)

Keywords

• Multi-strategy hedge fund
• Institutional asset management
• Alternative investment management
• Investment advisory services
• Global investment management

Headquarters

HQ city

San Francisco

HQ country

United States

HQ region

North America

Offices7 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Investment Management Fees: Farallon generates revenue through management fees charged on assets under management, typically a percentage of capital committed or invested. The firm also earns performance fees (carried interest) based on investment returns, consistent with standard hedge fund compensation structures.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels3 records

Core offering

Farallon Capital Management is a global, multi-strategy hedge fund that invests in public and private assets worldwide on behalf of institutional investors. The firm pursues six investment strategies — Credit, Long/Short Equity, Merger Arbitrage, Risk Arbitrage, Real Estate Investments, and Strategic Capital — implemented through bottom-up fundamental analysis and managed across approximately $44 billion in capital.

Product overview

Farallon Capital Management is a multi-strategy hedge fund offering investment management services across six distinct investment strategies: Credit, Long/Short Equity, Merger Arbitrage, Risk Arbitrage, Real Estate Investments, and Strategic Capital. The firm invests across asset classes globally in both public and private markets, implementing ideas developed through critical thinking and rigorous bottom-up fundamental analysis. Investment ideas compete for capital based on in-depth assessment of specific risks and rewards, with risk monitored through rigorous analysis and risk management analytics at the portfolio level.

Differentiator

Problem solved

Functional benefit

Products and services

• Credit Strategy
• Long/Short Equity Strategy
• Merger Arbitrage Strategy
• Risk Arbitrage Strategy
• Real Estate Investments Strategy
• Strategic Capital Strategy
• Farallon Multi-Strategy Fund (Institutional Investment Management)

Named customers4 records

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Three partnerships are on record, tiered minor and core.

• Fetner PropertiesminorStrategic or Co-development Partner · 2 June 2026Farallon Capital Management partnered with Fetner Properties and MCB Real Estate on the 240 Willoughby residential development in Fort Greene, Brooklyn. The two-tower development reached 100% occupancy of market-rate units, with Farallon providing capital for the project as part of a broader pipeline including three new projects comprising 800 residences planned for Long Island City and Manhattan.
• emeiscoreStrategic or Co-development Partner · 14 January 2026Farallon Capital and TwentyTwo Real Estate completed a €761 million investment to create Isemia, a dedicated healthcare real estate company holding a €1.2 billion portfolio of 68 assets across France, Germany, and Spain. The portfolio comprises nursing homes (48%) and clinics (52%), all operated under long-term leases by emeis. The structured financial instruments target a minimum yield of 6% and an expected pre-leverage IRR of approximately 12%.
• TwentyTwo Real EstatecoreStrategic or Co-development Partner · 14 January 2026TwentyTwo Real Estate and Farallon Capital completed a €761 million investment to create Isemia, a healthcare real estate company. TwentyTwo positions itself as an independent European investment and property management firm, creating a dedicated platform targeting the healthcare real estate sector with this partnership.

Scale indicators5 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Citadel: Citadel is the largest multi-strategy hedge fund with multi-hundred-billion AUM across global equities, fixed income, commodities, credit, and quantitative strategies. It is the most direct comparably structured competitor to Farallon's multi-strategy single-manager approach.
• Millennium Management: Millennium operates a multi-strategy, multi-PM platform similar in concept to Farallon across global equities, fixed income, commodities, and alternative investments, with institutional-allocator focus.
• Davidson Kempner: Davidson Kempner is a multi-strategy hedge fund with concentrations in distressed credit, event-driven, and special situations strategies; Farallon's head of IR David Posner previously led fundraising there, evidencing close operational overlap.
• D.E. Shaw: D.E. Shaw is a multi-strategy alternative investment firm combining systematic and discretionary strategies across global equities, fixed income, and private markets, with comparable institutional client base and AUM scale.
• AQR Capital Management: AQR is a multi-strategy investment firm combining fundamental and quantitative approaches across equities, fixed income, and alternatives; Farallon's Head of Risk Management Patrick Luo previously worked at AQR, indicating comparable talent and philosophy overlap.
• Anchorage Capital Advisors: Anchorage is a credit-focused alternative investment manager with event-driven and special situations strategies; it joined Farallon and Redwood as co-investors in At Home's Chapter 11 restructuring, evidencing directly comparable deal flow.
• Sculptor Capital Management: Sculptor (formerly Och-Ziff) is a multi-strategy global institutional asset manager with credit, equities, and event-driven strategies; multiple Farallon IR and operations professionals previously worked at Och-Ziff, demonstrating direct skill overlap.
• Marathon Asset Management: Marathon is a multi-strategy credit-focused alternatives manager with comparable AUM scale to Farallon, focusing on distressed, special situations, and private credit strategies, making it a close substitute for institutional LPs.

Broad incumbents

• Bridgewater Associates: Bridgewater is the world's largest hedge fund, operating macro and multi-strategy mandates for institutional investors including central banks and sovereign wealth funds; it is the broadest incumbent comparable to Farallon's institutional-allocator focus.

Emerging players

• Highfields Capital Management: Highfields is a value-oriented multi-strategy manager with a similar institutional LP base; Farallon IR Managing Director Heather Young joined from Highfields, evidencing close operational and cultural comparability.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/FarallonCapMgmt
• Facebookfacebook.com/Farallon-Capital-Management-Partners-147009058677535
• LinkedInlinkedin.com/company/farallon-capital-management

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Subsidiaries5 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments131 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Farallon Capital Management