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