Tiger Global Management, the renowned New York-based venture capital firm, has reportedly raised $2.7 billion for its latest private equity (PE) fund, falling short of its $6 billion target by 55 percent. According to the Financial Times, Tiger Global’s fundraising campaign began in October with the aim of investing in undervalued companies. While the firm achieved its first close milestone in January, securing more than half of the targeted amount, it still significantly trails the $6 billion objective, as revealed in a recent securities filing.
Tiger Global’s fundraising efforts for its 16th fund come after raising $12.7 billion for Fund 15 in March 2022. The firm had initially set out to raise $5 billion for its latest fund, scaling back its ambitions due to concerns raised by investors regarding potentially inflated startup valuations and the need for a market correction.
However, despite lowering its target to less than half the amount raised for its previous private equity fund in 2021, Tiger Global has encountered slower progress than anticipated. Investor caution and declining valuations have contributed to the challenges faced by the firm.
This situation is not unique to Tiger Global, as other prominent venture capital firms have experienced similar hurdles. Insight Partners, another New York-based firm, reportedly raised only $2 billion for a fund that initially aimed to secure $20 billion when it launched in June last year. SoftBank Group also disclosed that its Vision Fund 2 witnessed a significant decline of approximately 30 percent in the valuations of its private investments between April and December.
Since its establishment in 2001 by Chase Coleman, Tiger Global has emerged as one of the most active and successful venture capital investors. Over the past decade, the firm has backed numerous start-ups, amassing a portfolio that includes notable companies such as ByteDance (the parent company of TikTok), Shein (a fast-fashion retailer), and Stripe (a payments start-up). Despite the challenges posed by current market conditions, Tiger Global remains a prominent player in the venture capital landscape.
The firm’s ability to navigate evolving market dynamics and capitalize on promising investment opportunities will play a crucial role in determining its future success as it continues to support and shape the growth of innovative companies.
