Tiger Global Management is aiming to raise $6 billion for its upcoming venture fund, despite having to write off the value of its private portfolio due to institutional investors’ retreat from the asset class.
According to people familiar with the situation who asked to remain anonymous because they were discussing private communications, that figure is lower than the $8 billion some clients had initially been told the firm would probably target because markets have changed and because Tiger Global now places more emphasis on early-stage venture bets. Additionally, the amount is just slightly larger than the previous vintage.
According to the letter, PIP 16 will concentrate on internet-enabled corporate software, fintech, and consumer businesses because they are “underpenetrated areas” with strong potential for both immediate and long-term growth. In addition, the fund will make “opportunistic follow-on investments,” including secondary share purchases, in Tiger Global’s current roster of international portfolio businesses.
PIP 16 will be the 15th fund for Tiger Global (it skipped No. 13). Investors that join will pay a lower management fee of 1.75%, the firm stated in the letter, and the first closing will take place on January 18.
The fund will invest over a minimum two-year time frame. It will be Tiger’s third-largest private vehicle, valued at $6 billion. Earlier in 2022, PIP 15 closed with a record $12.7 billion.
