Tiger International slows tempo of funding with scaled-down fund

Tiger International is elevating a non-public fairness fund that can goal $6bn in funding, lower than half the quantity raised for a previous fund, because the outstanding know-how investor slows its as soon as breakneck tempo.

The fundraising started on Thursday, in line with a letter despatched to restricted companions and obtained by the Monetary Instances. Chase Coleman, Tiger’s billionaire founder, has been looking for buyers prepared to purchase into the know-how downturn that has battered his group’s portfolio.

Tiger’s previous non-public fairness fund of $12.3bn closed in February. The $6bn non-public fund is under early targets of about $8bn, in line with an individual acquainted with the state of affairs.

Folks near Tiger consider the brand new fund’s smaller scale of investments will match decrease valuations after the market rout this 12 months.

The group has promised it would make investments lower than half the fund in its first 12 months, a extra measured tempo than the prior fund, which is already largely invested. The scale of Tiger’s typical funding has additionally been practically halved to about $30mn.

The letter mentioned Tiger would try to make the most of alternatives corresponding to secondary gross sales of personal know-how corporations whose values have fallen within the monetary market downturn.

The diminished fundraising and defensive method comes because the $63bn in property Tiger confronts upheaval. Its flagship fund fell about 50 per cent this 12 months to July, in line with paperwork despatched to restricted companions, whereas it has marked down its greater than $45bn portfolio of personal know-how investments every month this 12 months, it just lately informed buyers.

The fund group has additionally skilled turnover amongst funding workers. On Monday, Tiger introduced that former associate John Curtius, who headed the agency’s software program and enterprise companies non-public fairness investments, could be leaving.

Curtius had been anticipated to briefly keep on following the announcement to make sure an orderly handoff of his portfolio to others inside Tiger. “John will work carefully with different funding staff members over the approaching months to transition his duties,” Tiger mentioned on Monday.

Nevertheless, as of Thursday he was not an worker, mentioned three folks acquainted with the state of affairs. Curtius is planning to launch an funding agency referred to as Cedar Funding Administration, folks with information of the matter mentioned.

Curtius had been one among Tiger’s most prolific buyers, main over 100 enterprise capital investments, in line with PitchBook knowledge, together with investments made as just lately as September 27.

This week, Tiger International fielded questions at conferences with restricted companions who sought to get a greater understanding of Curtius’s sudden departure, mentioned two folks instantly concerned with the matter.

Coleman and Scott Shleifer, head of Tiger’s non-public funding enterprise, determined this summer time that Curtius would go away the agency amid issues over the autonomy he was looking for in managing an more and more giant portfolio, folks near Tiger mentioned.

Internally and in discussions with restricted companions, Tiger has described itself as a collaborative agency, the place buyers overseeing private and non-private investments from the US to Brazil, India and China work carefully collectively to establish investments.

Folks near Curtius painted a distinct image. In latest months, he had been searching for the chance to start out his personal agency to capitalise on a dramatic reset in valuations throughout the business, they mentioned.

Tiger International and Curtius declined to remark.