Tiger Global Management Rolls Out New $3.75 Billion Venture Capital Fund

By Mariliana Fotopoulou Friday, January 15, 2021

Prominent US hedge fund company Tiger Global Management announced it will start a new $3.75 billion venture capital fund under the name “Tiger Private Investment Partners XIV,” expected to be rolled out in March, according to TechCrunch.

The Same Size as the Last One

This is the thirteenth venture fund for Tiger Global Management, which comes exactly a year after the business closed its previous fund also with $3.75 billion in capital commitments. The rollout comes at an interesting time as New Enterprise Associates closed its last business fund of $3.6 billion recently.

Similarly, Lightspeed Venture Partners closed over $4 billion across three funds, while the California-based venture capitalist firm Andreessen Horowitz said in November it is closing $4.5 billion across two funds.

The New York-based company is one of the investors in the cloud-based data-warehousing company Snowflake, but its stake was reportedly not large. Still, even a small stake in the company would be significant as Snowflake is currently worth nearly $86 billion.

The hedge fund is also a backer in US insurance companies Root Insurance and Columbus Life Insurance, which went public in November and is currently worth about $5.3 billion.

When it comes to mergers and acquisitions, three of Tiger’s companies were purchased last year: Postmates’ all-stock sale to rideshare giant Uber for $2.65 billion; Intuit’s $7 billion acquisition of Credit Karma, as well as Facebook’s $1 billion acquisition of customer service CRM platform Kustomer.

Last year, the hedge fund was reported to be holding $36.2 billion in assets under management. The company’s gross internal rate of return (IRR) across 12 of its earlier funds is 32%, and its net IRR is 24%.

Tiger’s investors include a combination of several foundations, wealth funds, endowments, pensions, and others who are currently the company’s largest investors.

The company’s best investing moves so far include a $200 million investment in the ecommerce company JD.com, which generated $5 billion in profits. The business also cleared over $1 billion on the Chinese shopping platform Meituan, which launched back in 2018.

Tiger Global Management was founded by Chase Coleman, a hedge fund manager reportedly worth over $5 billion.

Summary

Tiger Global Management announced that it is raising a new $3.75 billion venture fund named “Tiger Private Investment Partners XIV,” which represents its thirteenth venture fund. The company reportedly managed $36.2 billion in assets last year.

About the Author


Headshot for author Mariliana Fotopoulou

Mariliana has an MSC in consumer analytics and business strategy. She has a special interest in fast-moving industries and big data.

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