2 min read.Updated: 20 Mar 2022, 07:39 PM ISTTed Bunker, The Wall Street Journal
The multistrategy asset manager in New York collected its latest war chest in under six months
Tiger Global Management has banked some $12.7 billion for a new fund to back fast-growing technology companies in their early stages amid a surge in tech investments that accelerated during the pandemic.
The multistrategy firm raked in more than $11 billion for its latest growth-investment fund, Tiger Global Private Investment Partners XV LP, in less than four months, a regulatory filing shows. The firm added more than $1.5 billion from employees to close the vehicle at about $12.7 billion, according to a document sent to investors that was viewed by The Wall Street Journal.
The new fund is roughly twice the firm’s previous growth fund, which had collected more than $6.65 billion when it closed last year.
New York-based Tiger Global is investing from the new vehicle in fast-growing, internet-enabled businesses early in their life cycles, with more than half made in Series A or B rounds, the document shows. In early February, the firm reported 900 investors in the new fund.
As an investor, Tiger Global surpassed all other venture firms last year, backing 335 deals, a more than fourfold increase from the 79 transactions it did in 2020, according to data provider CB Insights. The firm picked up the pace as this year began, doing two deals each business day into mid-February, the data show.
But Tiger Global has shifted its emphasis away from late-stage startups and companies at the pre-initial public offering stage, CB Insights said in a recent report. So far this year, late-stage deals accounted for just 17% of the total, compared with 49% two years earlier.
A Tiger Global spokeswoman declined to comment on the CB Insights data.
Private-equity firms announced backing U.S. technology deals totaling $411.16 billion last year, according to data provider Dealogic. That was up from $196.88 billion in 2020, the data show.
The new fund substantially increases the amount Tiger Global has to invest, as the firm reported having about $79.1 billion of regulatory assets under management at the start of last year, a regulatory filing shows.
But the firm’s public-equity growth investment fund took a hit recently as the Federal Reserve indicated rate hikes would be made to quell inflation. The Wall Street Journal has reported that Tiger Global’s hedge fund lost 36.7% from November through February amid a rout among growth investors.
Tiger Global has backed some of the premier internet companies, including Facebook Inc., now called Meta Platforms Inc.; Airbnb Inc.; Microsoft Corp.’s LinkedIn Corp.; and Peloton Interactive Inc., according to a news release.