Tiger Global has launched its Tiger Global Private Investment Partners XVII fund. According to an investor letter obtained by Hedge Fund Alpha, the firm expects PIP 17 to look similar to its most recent vintage, PIP 16, and most of the previous PIP funds. Tiger Global intends to hold the initial close on March 18, with expectations that its own team will be the largest investor in PIP 17. The firm emphasized that its interests are still in alignment with their partners’ interests.
Also see: The Business Genius Of Chase Coleman's Tiger Global
Big winners over the last 20+ years
Since the early 2000s, Tiger Global has been investing through every major shift in technology, spotting 13 winners that have generated over $1 billion in gains each for its PIP funds. Those big winners include JD.com, Flipkart, Nubank and Roblox. The Tiger Global team’s approach involves targeting high “hit rates” on their investments via deep research, then combining that with significant convexity.
According to the firm, strong execution of this strategy results in outsized gains. Overall across the PIP funds, Tiger Global has enjoyed profits in excess of 9x greater from its 10 biggest winners compared to the losses from their 10 biggest losers.
Smaller, greater concentration
Throughout the firm’s history, it has discovered that funds that are smaller with greater concentration have generated its greatest returns. Tiger Global’s first 10 PIP vintages each had less than $3 billion of committed capital and averaged fewer than 50 investments, generating a gross IRR of 34% and a net IRR of 23%. These funds have also made distributions that have surpassed the commitments made by investors. The Tiger Global team believes funds of that size provide sizable benefits, especially related to the impact of mid-sized investments.
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