Tiger Global reportedly targets $2.2b for new venture fund

Tiger Global Management is reportedly launching a new venture capital fund, Private Investment Partners 17, with a US$2.2 billion fundraising target.

The hedge fund said the new fund will follow a similar strategy and size as its recent Private Investment Partners 16, which also closed at US$2.2 billion.

Tiger Global has slowed its investment pace, making nine new private investments this year, compared to 212 rounds in 2021, according to Crunchbase.

Tiger Global has exited more than 85 companies from its previous fund, generating over US$1 billion in proceeds for reinvestment.

Key holdings in its recent funds include OpenAI, Waymo, Revolut, ByteDance, Flock Safety, Harbinger, Rokt, Cargomatic, and BVNK.

🔗 Source: CNBC

🧠 Food for thought

Implications, context, and why it matters.

Tiger’s track record casts doubt on its “cautious” positioning

Tiger Global is raising its next Private Investment Partners (PIP) fund with a $2.2 billion target and says it will be more cautious, while flagging high AI valuations.

Claims of caution appear shaky. It backed 315 startups in 2021, and PIP 15 had paper losses over 15% on June 30, 2024, putting it in the bottom 10% of 2021 vintage funds 1.
Markdowns include Superhuman (down 45%), DuckDuckGo (down 72%), and OpenSea (down 94%) 1.
Tiger says it generated over $1 billion in proceeds from more than 85 exits from its previous fund (per a letter viewed by CNBC). That looks small next to the $12.7 billion size of its 2021-vintage PIP 15 fund 1.
AI warnings sound soft, yet it holds pricey AI stakes like OpenAI and Waymo.

Secondary market openings emerge from Tiger’s portfolio stress

PIP 16 closed at $2.2 billion versus a $6 billion goal after about 18 months 1. Support for struggling portfolio companies now looks limited.
Secondary funds (specialist investors that buy existing private stakes) and other buyers should watch for discounts on OpenAI, ByteDance, and Revolut. The firm or its limited partners (LPs) may sell to raise cash from underperforming funds.
Private wealth management platforms and secondary brokers (intermediaries that facilitate trading of private company shares) should track financing rounds across the portfolio. Follow-on capacity looks smaller, with 24 venture capital (VC) deals in 2024 versus 315 startups backed in 2021 1. That opens room for new capital on better terms.