![]() These same institutions also typically pull back from their new fund commitments, because as their public market portfolios shrink, they become overweighted by their private market allocations. ![]() When public shares start to nosedive as now, university endowments, pension funds and other institutional investors grow loath to fulfill their capital obligations because it means having to sell public company shares that are underwater. That process allows VCs to begin the clock on each investment as soon as a check is written, but it also subjects them to extreme market volatility. And it isn’t like venture firms set aside money inside a giant piggy bank they call down committed capital from their investors as they need it. Almost every institutional investor in the world has seen its stock portfolio hammered. In the first quarter this year, wrote the firm, “remaining value in the funds decreased by 9%, following an increase of 54% in 2021.” (Presumably, that value has sunk further in Q2, as valuations begin to drop broadly across the startup ecosystem.)Īccording to that same investor letter, Tiger Global boasts of stakes in 38 companies that went public last year - including Coinbase, Freshworks, SentinelOne and Toast - and says it distributed $3.7 billion to investors last year.Įither way, there could hardly be a worse time to be raising another enormous venture fund. According to a letter to investors obtained by TechCrunch, the firm’s private portfolio funds - as of the end of the first quarter of this year - had generated a 25% net IRR since inception in 2003. In all likelihood, the firm - which declined to comment - has soft commitments in place already based on its recent performance. The question begged, naturally, is how much money Tiger Global can collect for its next fund - and by when. Still, $12.7 billion is a lot of money, and it’s not even June. The 78 deals it led in the first quarter of this year - including a $768 million Series E round for Getir, the Istanbul-based on-demand delivery service, a $530 million Series D round for the Paris-based online bank Qonto and a $273 million Series C round for French wholesale marketplace Ankorstore - wound up in companies that collectively raised $7.6 billion, Crunchbase News reported last month. It November, it led a $600 million Series D round for the electric vehicle company Nuro. In December, Tiger Global led a $1.8 billion Series B investment into the nuclear fusion startup Commonwealth Fusion Systems. Those rounds, at least until earlier this year, were not small. It added 118 unicorn companies to its list of portfolio companies last year, according to Crunchbase News, and it continued to outpace every other investor in the first quarter of this year. On the one hand, it’s not entirely astonishing to anyone paying attention that Tiger Global has put so much money to work already. Yet even that new fund - which reportedly took less than six months to raise and includes $1.5 billion in commitments from Tiger Global’s own employees - is almost fully invested already, according to a source close to the firm. ![]() Early last year, it closed its thirteenth venture fund (titled XIV for superstitious reasons) with $6.65 billion before closing its newest fund, fund XV, with a massive $12.7 billion in capital commitments in March of this year. ![]() In 2020, the firm closed its twelfth venture fund with $3.75 billion in capital commitments. The question is whether that trouncing will impact the firm’s venture business, which - like that of many other venture businesses - has ballooned rapidly in recent years. ![]() FT notes that’s one of the biggest dollar declines for a hedge fund in history.Īs shocking, per FT, according to the calculations of a fund of hedge funds run by the Edmond de Rothschild Group, Tiger Global’s hedge fund assets have been so hard hit that the outfit has in four months erased about two-thirds of its gains since its launch in 2001. According to a new report from Financial Times, the low-flying-yet-seemingly-ubiquitous 21-year-old outfit has seen losses of about $17 billion during this year’s tech stock sell-off. ![]()
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