Tiger Global Management has raised some $12.7 billion for a new fund to support early-stage, fast-growing tech companies amid rising tech investment that has accelerated during the pandemic.
The multi-strategy firm raised more than $11 billion for its latest growth investment fund, Tiger Global Private Investment Partners XV LP, in less than four months, according to a regulatory filing. The company added more than $1.5 billion from employees to close the vehicle to about $12.7 billion, according to a document sent to investors and viewed by The Wall Street Journal.
The new fund is about double the company’s previous growth fund, which raised more than $6.65 billion when it closed last year.
New York-based Tiger Global invests from the new vehicle in fast-growing, connected companies early in their lifecycles, with more than half in Series A or B, the document says. In early February, the firm reported 900 investors in the new fund.
As an investor, Tiger Global outpaced all other venture capital firms last year, backing 335 deals, a fourfold increase from the 79 deals completed in 2020, according to data provider CB Insights. The firm picked up the pace early this year, closing two deals every business day until mid-February, the data showed.
But Tiger Global has shifted its focus away from late-stage startups and pre-IPO stage companies, CB Insights said in a recent report. So far this year, late-stage deals have accounted for just 17% of the total, down from 49% two years earlier.
A spokeswoman for Tiger Global declined to comment on the data from CB Insights.
Private equity firms said they backed US technology deals totaling $411.16 billion last year, according to data provider Dealogic. That was up from $196.88 billion in 2020, the data showed.
The new fund significantly increases the amount Tiger Global must invest, as the company said it had about $79.1 billion in regulatory assets under management at the start of last year, according to a regulatory filing.
But the company’s public equity growth fund has taken a hit recently, as the Federal Reserve indicated that rate hikes would be made to curb inflation. The Wall Street Journal reported that the Tiger Global hedge fund lost 36.7% from November to February amid a rout among growth investors.
Tiger Global has backed some of the major internet companies, including Facebook Inc., now called Meta Platforms Inc.; Airbnb Inc.; LinkedIn Corp. of Microsoft Corp. ; and Peloton Interactive Inc., according to a press release.
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