New York-based investing powerhouse, raised new $3.75 billion venture fund called Tiger Private Investment Partners XIV that it expects to close in March 2021.
The fund is Tiger Global’s thirteenth venture fund, despite its title the partners might be superstitious and it comes hot on the heels of the firm’s twelfth venture fund, closed exactly a year ago, also with $3.75 billion in capital commitments.
A spokesperson for the firm declined to comment on the letter or Tiger Global’s broader fundraising strategy when reached this morning.
It’s a lot of capital to target, even amid a sea of enormous new venture vehicles. New Enterprise Associates closed its newest fund with $3.6 billion last year. Lightspeed Venture Partners soon after announced $4 billion across three funds. Andreessen Horowitz, the youngest of the three firms, announced in November it had closed a pair of funds totaling $4.5 billion.
At the same time, Tiger Global seemingly has a strong case to present potential limited partners. Last year alone, numerous of its portfolio companies either went public or were acquired.
Yatsen Holding, the nearly five-year-old parent company of China-based cosmetics giant Perfect Diary, went public in November and is now valued at $14 billion. (Tiger Global’s ownership stake didn’t merit a mention on the company’s regulatory filing.)
Tiger Global also quietly invested in the cloud-based data warehousing outfit Snowflake and, while again, it didn’t have a big enough stake to be included in the company’s S-1, even a tiny ownership percentage would be valuable, given that Snowflake is now valued at $85 billion.
And Tiger Global backed Root insurance, a nearly six-year-old, Columbus, Ohio-based insurance company that went public in November and currently boasts a market cap of $5.3 billion. Tiger owned 10.3% sailing into the offering.
As for M&A, Tiger Global saw at least three of its companies swallowed by bigger tech companies during 2020, including Postmates’s all-stock sale to Uber for $2.65 billion; Credit Karma’s $7 billion sale in cash and stock to Intuit; and the sale of Kustomer, which focused on customer service platforms and chatbots, for $1 billion to Facebook.
Tiger Global, whose roots are in hedge fund management, launched its private equity business in 2003, spearheaded by Chase Coleman, who’d previously worked for hedge-fund pioneer Julian Robertson at Tiger Management; and Scott Shleifer, who joined the firm in 2002 after spending three years with the Blackstone Group. Lee Fixel, who would become a key contributor in the business, joined in 2006.