Tiger Global Management, the New York-based investment powerhouse, is raising a new $ 3.75 billion venture fund called Tiger Private Investment Partners XIV, which is slated to close in March, according to a recent letter to its investors.
Despite its title – partners may be superstitious – the fund is Tiger Global’s thirteenth venture fund, and it follows the company’s twelfth venture fund, which closed exactly a year ago and also has $ 3.75 billion in capital commitments Has.
A company spokesman declined to comment this morning on the letter or Tiger Global’s broader fundraising strategy.
It’s a lot of capital to target even in the midst of a sea of huge new venture vehicles. New Enterprise Associates closed its newest fund for $ 3.6 billion last year. Lightspeed Venture Partners announced $ 4 billion in three funds shortly thereafter. Andreessen Horowitz, the youngest of the three companies, announced in November that it had closed two funds totaling $ 4.5 billion.
At the same time, Tiger Global apparently has a strong argument to introduce potential limited partners. In the past year alone, numerous portfolio companies went public or were taken over.
Yatsen Holding, the nearly five-year-old parent company of China-based cosmetics giant Perfect Diary, went public in November and is now valued at $ 14 billion. (Tiger Global’s involvement didn’t deserve a mention in the company’s regulatory filings.)
Tiger Global also tacitly invested in cloud-based data warehousing company Snowflake, and while it wasn’t big enough to be included in the company’s S-1, even a tiny ownership stake would be valuable as Snowflake is now on Estimated $ 85 billion.
Tiger Global backed Root Insurance, a nearly six-year insurance company based in Columbus, Ohio that went public in November and currently has a market cap of $ 5.3 billion. Tiger owned 10.3%, which went into the offer.
The story goes on
As for mergers and acquisitions, Tiger Global saw at least three of its companies swallowed up by larger tech companies in 2020, including selling all of Postmates’ shares to Uber for $ 2.65 billion; the sale of $ 7 billion in cash and stock of Credit Karma to Intuit; and the sale of Kustomer, which focused on customer service platforms and chatbots, to Facebook for $ 1 billion.
Tiger Global, with roots in hedge fund management, launched its private equity business in 2003, led by Chase Coleman, who previously worked for Tiger Management for hedge fund pioneer Julian Robertson; and Scott Shleifer, who joined the company in 2002 after three years with the Blackstone Group. Lee Fixel, who was supposed to be an important contributor to the business, joined in 2006.
Shleifer focused on China, Fixel focused on India and the rest of the company’s support team (which now employs 22 investment professionals) helped find business in Brazil and Russia before it began to look more aggressively on opportunities in the US focus
Each investment decision was ultimately made by each of the three. Fixel left the company in 2019 to start his own investment firm Addition. Now Shleifer and Coleman are the sole decision makers in the company.
Whether the company will eventually replace Fixel is an open question, though it doesn’t seem like the plan. Tiger Global is known for encouraging investors into its operations rather than hiring outsiders, so a new top lieutenant would almost certainly come from its current team.
Meanwhile, the company’s private equity arm, which has written everything from Series A (Warby Parker) checks to checks for hundreds of millions of dollars, currently manages $ 30 million in assets compared to its 49 Billions of dollars, the Tiger is being handled more broadly.
A year ago, Tiger Global, which has 100 employees, reportedly managed assets of $ 36.2 billion.
According to the company’s investor letter, the company’s gross internal return for its 12 previous funds is 32% while the net IRR is 24%.
Tiger Global’s investors include a mix of sovereign wealth funds, trusts, trusts, pensions and its own employees who, taken together, are currently considered the company’s largest investors.
Tiger Global’s biggest wins to date included a $ 200 million bet on e-commerce giant JD.com, which grossed the company $ 5 billion. It also settled more than $ 1 billion on China’s online services platform Meituan, which went public in 2018, according to WSJ.
Tiger Global also reportedly raised $ 3 billion from the majority sale of India’s Flipkart to Walmart in 2018, although the Indian government has recently attempted to reclaim $ 1.9 billion from the company, claiming it did have outstanding taxes on the sale of their stake in the company.
A finding that might surprise even Tiger Global’s investors, who are affiliated with the related fitness company Peloton, which at the time of Peloton’s 2019 IPO (a deal that Fixel allegedly brought to the table with Flipkart) was 20% owned. With the addition of new users during the pandemic, Peloton – which was valued at $ 4 billion by private investors and instantly doubled as a public company – now has a market cap of $ 48.6 billion.
Tiger Global has invested its current fund in around 50 companies over the past 12 months.
The latest bets include Blend, an eight-year-old San Francisco-based digital lending platform, which yesterday announced $ 300 million in Series G funding, including Coatue, with a post-money rating of 3.3 Announced billions of dollars.
It also spearheaded the newly announced $ 450 million Series C Round for Checkout.com, an eight-year-old London-based online payments platform now valued at $ 15 billion. And it wrote a follow-up check to Cockroach Labs, the nearly six-year-old New York-based SQL distributed database that has just raised $ 160 million in Series E funding valued at $ 2 billion just eight months after raising $ 86.6 million Round D.
Another of their newest and biggest bets is focused on the online education platform Zuowebang in China. Back in June, Tiger Global spearheaded a $ 750 million Series E round at the company.
It came back last month, spearheading a $ 1.6 billion round in the distance learning company.
Pictured: Scott Shleifer, Partner and Head of Private Equity at Tiger Global Management, right, speaks to an attendee during the UJA-Federation of New York Wall Street Dinner in New York, on Wednesday, December 14, 2011.