Tiger World’s Now-Nugatory FTX Wager Had Bain’s Due Diligence

(Bloomberg) — Bain & Co. was amongst consulting corporations that helped conduct due diligence for Tiger World Administration’s funding in now-defunct crypto alternate FTX, in line with folks aware of the matter.

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Tiger World, which pays Bain greater than $100 million a 12 months to analysis non-public corporations, has now written down its $38 million FTX stake to zero, the folks stated. Sam Bankman-Fried’s oversight of an unlimited internet of FTX-linked entities was one of many dangers highlighted through the due-diligence course of, however the cash supervisor nonetheless believed it was a sound funding on the time, one of many folks stated.

A consultant for Chase Coleman’s Tiger World declined to remark, and Bain didn’t instantly reply to messages searching for remark.

This month’s implosion of FTX has induced billions of {dollars} of potential losses for traders and sparked authorized and regulatory probes. It additionally prompted questions on how warning indicators had been missed by institutional traders, together with hedge funds and enterprise capital corporations. Ontario Academics’ Pension Plan was amongst them, writing off its total $95 million funding, whereas Sequoia Capital marked down its $214 million wager to zero.

Learn extra: Investor Studied Crypto For Years, Then Missed FTX’s Pink Flags

Tiger World’s FTX funding was a tiny portion of its $12.7 billion Personal Funding Companions 15 fund. The agency first backed FTX in October 2021, when the crypto alternate was valued at $25 billion, and once more in January at a $32.5 billion valuation, in line with PitchBook knowledge.

The FTX wager was one in all 358 enterprise capital investments Tiger World made final 12 months, and one in all 290 to this point in 2022, in line with PitchBook.

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