Tiger Global Fund Falls Short of Target

Tiger Global Management recently concluded fundraising for its latest venture-capital fund, Private Investment Partners 16 (PIP 16), securing $2.2 billion. This amount fell significantly short of its initial $6 billion target, marking the fund as Tiger Global's smallest in approximately ten years and the first time a Tiger venture fund raised less than its predecessor. This downturn reflects a broader fundraising challenge within the venture capital and private equity sectors, attributed to cautious investor sentiment due to declining valuations and a dry-up in deals. The fundraising climate has been notably difficult, with other major firms also missing their targets.

Tiger Global's previous fund raised $12.7 billion, showcasing a stark contrast in investor demand and market conditions. The firm has faced a series of challenges, including marking down its venture capital portfolio by 33% in 2022 and an additional 6% last year. PIP 16's focus will be primarily on enterprise technology startups in the US and India, with Tiger insiders contributing a significant portion of the fund's assets.

The fundraising shortfall and market downturn represent a shift from Tiger Global's rapid investment strategy just before the industry slump. The firm's assets have halved from $100 billion in 2021 to $50 billion, indicating a period of adjustment and recovery for Tiger Global amidst a challenging investment landscape.