Tiger Global raises $2.5bn for venture deals

The New York-based firm closes the vehicle less than a year after raising its $1.5bn predecessor

New York-headquartered investment firm Tiger Global Management, known primarily for its hedge fund activities, has raised $2.5 billion for a venture capital fund that will invest across the globe, according to a filing with the US Securities and Exchange Commission.

It will be Tiger’s ninth venture capital fund, having raised its eighth earlier this year, which was $1.5 billion in size. It was launched in September, just five months after the previous fund had closed, according to earlier media reports. The eighth fund had been around the same size as its own predecessor, a 2012 vintage that closed on $1.49 billion.

“It’s concerning that they’re back so soon,” Fortune quoted a potential LP as saying earlier. “But the pace and size of investments right now is unprecedented, so maybe this is actually the beginning of a trend. You do worry about committing at a market peak, but there also is the chance that a firm like Tiger could also succeed in a down market, by backing mature companies in need of a lifeline.”

Despite apparent concerns, the fund, Tiger Global Investment Partners IX, hit its target, raising money from as many as 521 investors, the filing showed. The firm could not be reached for comment.

Tiger Global focuses on venture opportunities worldwide and has made investments in businesses such as internet encyclopaedia company Quora, One Kings Lane and Eventbrite. It has also invested in Facebook, LinkedIn and Harrys.

Globally, the firm has taken stakes in businesses such as Flipkart, Olacabs, Just Dial and MakeMyTrip in India, as well as investing $199 million to buy the limited partnership interests in two of Yunfeng Capital’s funds from online gaming company Giant Interactive. Yunfung is the China-focused private equity firm of Jack Ma, founder and chairman of Alibaba Group. 

Headquartered in New York, Tiger Global was one of many firms to spin out of Julian Robertson’s Tiger Management, forming a class of investment firms known as the ‘Tiger Cubs’. The firm has about $5.7 billion in assets under management, according to Private Equity International’s Research and Analytics division.