Tiger Global scales down plans to $6 billion for new fund to back enterprise companies and Indian startups

• ByStartupStory     |    October 7, 2022

Tiger Global is seeking $6 billion for a new fund even after writing down the value of its private portfolio as institutional investors pull back from the asset class. The new vehicle, Private Investment Partners Fund 16, will invest in startups, “largely in enterprise themes and in India” and “in a lower-valuation environment,” Tiger Global said in a letter to investors Thursday.

The letter sent to limited partners reveals that fundraising for the new fund – Private Investment Partners Fund 16 – the $6 billion target size is less than half the size of Tiger Global’s prior investment vehicle, which closes in February with $12.3 billion in commitments, and reflects expected lower company market valuations following the tech sector rout earlier this year.

PIP 16 will be Tiger Global’s 15th fund (it  had skipped No. 13). Its first close will be Jan. 18, and investors who participate will get a reduced management fee of 1.75%. The fund will make investments over a period of at least two years. At $6 billion, it will be Tiger’s third-largest private vehicle. PIP 15 closed earlier in 2022 with a record $12.7 billion.

As Tiger Global slows its once break-neck pace and adopts a more measured approach to investments, less than half of the funds raised are set to be invested in the first year . The fund’s typical deal-size has reportedly been halved to around $30 million, with the letter indicating that Tiger will look to take advantage of secondary sales of private technology companies whose values have fallen in the financial market downturn.

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