Chase Coleman’s firm is looking to raise about $2.2 billion for a new venture fund, keeping the latest debut about on pace with its last, according to a letter sent to investors Monday. The move departs from two earlier vehicles that raised $6.7 billion and $12.7 billion, marking the firm’s biggest illiquid pools.
Tiger’s first 10 Private Investment Partners funds — which each managed less than $3 billion and made fewer than 50 investments — produced an internal rate of return of 23%, according to the firm.
The new PIP 17 fund will resemble those earlier funds and its most-recent predecessor in strategy, size and construction, the firm said. Tiger insiders, including Coleman, will be the largest investors in the fund, which is expected to have its first close on March 18.
The firm declined to comment.
Tiger aims to make a comeback after ramping up venture capital wagers in 2021 and 2022, just ahead of an industrywide downturn. It initially sought billions more for PIP 16 than the $2.2 billion it actually raised.
Moderate Pace
Now Tiger, which has been backing startups for over two decades, is betting on a more moderate pace of investments. The firm made just nine new investments this year after evaluating hundreds of possibilities, it said. PIP 17 will also take several years to deploy cash, Tiger said in the letter.
Tiger has sold more than 85 companies in the larger PIP 15 fund, realizing more than $1 billion that it used to add to existing investments in soaring tech companies such as ByteDance and fintech Revolut.
Over the past three years, about two-thirds of the cash Tiger has invested for PIP 16 is in artificial intelligence-related companies, including autonomous vehicle company Waymo, OpenAI, software firm Temporal and AI infrastructure firm Cerebras.
That fund shows signs of having a “high hit rate” with “no known impairments today,” the letter said.
“This is a unique moment in history,” Tiger wrote, referring to the promise of AI. “We also recognize the importance of approaching a technological shift of this magnitude with some humility, as there are many unknowns today and the rate of change is unprecedented.”
CNBC earlier reported the PIP 17 fund launch.
