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What the numbers say: Hedge fund and VC firm Tiger Global Management's $12.7B fund, which launched in October 2021, has posted a loss of 20%, per documents reviewed by The Information. Losses have widened from 8% in June 2022 to 11% in September later in the same year. Records show that Tiger has already invested $11B of the fund. A quarter of the investments were into the enterprise software sector, followed by fintech and crypto. What happened: The losses are due to the steep valuation plunges of portfolio companies, such as OpenSea, Bored Ape, Stripe, and ByteDance. Tiger's $126.8M investment into NFT startup OpenSea and $144.6M investment into Chinese firm ByteDance are now worth $30.2M and $100.8M, respectively. According to reports, the company used the cash to invest in 250 businesses, 170 of which experienced a decline in valuation. Last month, a WSJ report showed that Tiger's funds lost $23B of value in 2022, corresponding to an average 33% markdown in the value of funds. The entire write-off of FTX and FTX U.S. investments compounded the losses even further.
Where to see the impact: The write-down of valuations and the industry-wide retrenchment has made it difficult for Tiger to raise funding for its new fund. Earlier this year, Tiger lowered the target for its PIP 16 fund from $6B to $5B. The target is significantly lower than its previous two funds. |
