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According to a current letter despatched to its traders, Tiger Global Management, the New York-based investing powerhouse, is elevating a brand new $3.75 million enterprise fund known as Tiger Private Investment Partners XIV that it expects to shut in March.
The fund is Tiger’s thirteenth enterprise fund, regardless of its title — the companions is likely to be superstitious — and it comes sizzling on the heels of the agency’s twelfth enterprise fund, closed precisely a yr in the past, additionally with $3.75 billion in capital commitments.
A spokesperson for the agency declined to touch upon the letter or Tiger’s broader fundraising technique when reached this morning.
It’s quite a lot of capital to focus on, even amid a sea of monumental new enterprise automobiles. New Enterprise Associates closed its latest fund with $3.6 billion final yr. Lightspeed Venture Partners quickly after introduced $4 billion throughout three funds. Andreessen Horowitz, the youngest of the three companies, introduced in November it had closed a pair of funds totaling $4.5 billion.
At the identical time, Tiger seemingly has a powerful case to potential restricted companions. Last yr alone, quite a few of its portfolio corporations both went public or was acquired.
Yatsen Holding, the almost five-year-old guardian firm of China-based cosmetics big Perfect Diary, went public in November and is now valued at $14 billion. (Tiger’s possession stake didn’t benefit a point out on the corporate’s regulatory submitting.)
Tiger additionally quietly invested within the cloud-based information warehousing outfit Snowflake and, whereas once more, it didn’t have a sufficiently big stake to be included within the firm’s S-1, even a tiny possession proportion can be priceless, on condition that Snowflake is now valued at $85 billion.
And Tiger backed Root insurance coverage, an almost six-year-old, Columbus, Oh.-based insurance coverage firm that went public in November and presently boasts a market cap of $5.3 billion. Tiger owned 10.3% crusing into the providing.
As for M&A, Tiger noticed at the least three of its corporations swallowed by larger tech corporations throughout 2020, together with Postmates’s all-stock sale to Uber for $2.65 billion; Credit Karma’s $7 billion sale in money and inventory to Intuit; and the sale of Kustomer, which targeted on customer support platforms and chatbots, for $1 billion to Facebook.
Tiger, whose roots are in hedge fund administration, launched its non-public fairness enterprise in 2003, spearheaded by Chase Coleman who’d beforehand labored for hedge-fund pioneer Julian Robertson at Tiger Management; Scott Shleifer, who joined the agency in 2002 after spending three years with the Blackstone Group; and, quickly after, Lee Fixel, who joined the agency in 2006.
Shleifer targeted on China; Fixel targeted on India, and the remainder of the agency’s assist group (it now has 22 investing professionals on workers) helped discover offers in Brazil and Russia earlier than starting to focus extra aggressively on alternatives within the U.S.
Every investing resolution was finally made by every of the three. Last yr, Fixel left Tiger in 2019 to launch his personal funding agency, Addition. Now Shleifer and Coleman are the agency’s sole decision-makers.
Whether the agency replaces Fixel is an open query. Tiger is thought for grooming traders inside its operations reasonably than hiring outsiders, so a brand new prime lieutenant would nearly absolutely come from its present group.
In the meantime, the agency’s non-public fairness arm — which has written all the things from Series A checks (Warby Parker) to checks within the a number of lots of of tens of millions of {dollars} — is presently managing property of $30 million, in contrast with the $49 billion that Tiger is managing extra broadly.
A yr in the past, Tiger Global, which employs 100 individuals altogether, was reportedly managing $36.2 billion in property.
According to the outfit’s investor letter, the agency’s gross inner fee of return throughout its 12 earlier funds is 32%, whereas its web IRR is 24%.
Tiger’s traders embody a mixture of sovereign wealth funds, foundations, endowments, pensions, and its personal staff, who’re collectively believed to be the agency’s greatest traders at this level.
Some of Tiger’s greatest wins to this point have embody a $200 million guess on the e-commerce big JD.com that produced a $5 billion for the agency. According to the WSJ, it additionally cleared greater than $1 billion on the Chinese online-services platform Meituan Dianping, which went public in 2018.
Tiger additionally reportedly reaped $3 billion from majority sale of India’s Flipkart to Walmart in 2018, although the Indian authorities has extra just lately been making an attempt to get well $1.9 billion from the agency, claiming it has excellent tax dues on the sale of its share within the firm.
Not final, Tiger owned almost 20% of the linked health firm Peloton on the time of its 2019 IPO (a deal that Fixel reportedly delivered to the desk, together with Flipkart).
Peloton, valued by non-public traders at $4 billion earlier than doubling instantly in worth as a publicly traded firm, now boasts a market cap of $48.6 billion.
Tiger has invested its present fund in roughly 50 corporations during the last 12 months. Among its latest bets is Blend, an eight-year-old, San Francisco-based digital lending platform that yesterday introduced $300 million in Series G funding, together with from Coatue, at a post-money valuation of $3.3 billion.
It additionally led the newly introduced $450 million Series C spherical for Checkout.com, an eight-year-old, London-based on-line funds platform that’s now valued at $15 billion. And it wrote a follow-on verify to Cockroach Labs, the almost six-year-old, New York-based distributed SQL database that simply raised $160 million in Series E funding at a $2 billion valuation, simply eight months after elevating an $86.6 million Series D spherical.
Another of its latest, greatest bets facilities on the net training platform Zuowebang, in China. Back in June, Tiger co-led a $750 million Series E spherical within the firm.
Last month, Tiger was again once more, co-leading a $1.6 billion spherical within the distance-learning firm.
Pictured: Scott Shleifer, managing director of Tiger Global Management LLC, proper, speaks with an attendee through the UJA-Federation of New York Wall Street Dinner in New York, on Wednesday, Dec. 14, 2011.
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