Hedge fund Tiger World is seeking to elevate $6 billion in a brand new fund, at the same time as traders shrink back from enterprise backing.
The $6 billion determine is lower than half of New York-based Tiger’s earlier fund and fewer than the $8 billion that shoppers had initially been informed the corporate would goal, based on revealed stories Thursday (Oct. 6).
The brand new fund, often known as Non-public Funding Companions Fund 16 (PIP 16), will spend money on startups, “largely in enterprise themes and in India” in addition to “in a lower-valuation setting,” Tiger World reportedly stated in a letter to traders Thursday.
Tiger World declined to remark Thursday afternoon.
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PIP 16 will concentrate on internet-enabled enterprise software program, FinTech and shopper corporations as a result of they’re “underpenetrated classes” with potential for speedy and long-term progress, the letter acknowledged, per stories.
As well as, the fund will make “opportunistic follow-on investments” in Tiger World’s present lineup of worldwide portfolio corporations, together with by way of secondary share purchases.
Workers will contribute a minimum of $500 million, with most coming from Founder Chase Coleman and agency associate Scott Shleifer, Bloomberg reported Thursday, citing unnamed sources.
This has been a tumultuous yr for Tiger World, with 2022’s tech inventory sell-off reportedly costing the agency round $17 billion.
Learn extra: Tiger World Faces ‘Breathtaking’ $17B Loss, Professional Says
That drop meant Tiger World — one of many largest hedge funds on this planet — noticed round two-thirds of the positive factors it had constructed up since its founding in 2001 worn out in 4 months.
“The magnitude of the loss is breathtaking, particularly for a fund with ‘hedge’ in its identify,” Andrew Beer, managing member at funding agency Dynamic Beta, stated on the time. “This exhibits how even probably the most gifted and plugged-in tech traders did not see the practice coming down the tracks.”
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