Tiger Global Management’s venture capital arm is returning to an earlier playbook, rolling out smaller and more deliberate funds that it says deliver its strongest performance.
Chase Coleman’s firm plans to raise about $2.2 billion for its upcoming venture vehicle, keeping the new fund roughly in line with the previous one, according to a Monday letter sent to investors. This shift moves away from its two prior mega-funds, which collected $6.7 billion and $12.7 billion, the largest illiquid pools in its history.
Tiger achieved a 23% internal rate of return with its first 10 Private Investment Partners (PIP) funds—each managing under $3 billion and executing fewer than 50 deals—according to the firm.
The new PIP 17 fund will mirror those earlier funds and its immediate predecessor in terms of strategy, size, and structure, the firm said. Tiger insiders, including Coleman, will serve as the largest contributors to the vehicle, which plans to reach its first close on March 18.
The firm did not provide any comment.
Tiger aims to stage a comeback, especially after aggressively deploying venture capital in 2021 and 2022, right before the broader market slowdown. It initially targeted a larger raise for PIP 16 but ultimately closed at $2.2 billion.
Tiger exited more than 85 companies from the larger PIP 15 fund, generating over $1 billion, which it reinvested into winners such as ByteDance and fintech Revolut.
Over the past three years, Tiger Global allocated about two-thirds of PIP 16’s capital to artificial intelligence ventures, including autonomous driving leader Waymo, OpenAI, software platform Temporal, and AI infrastructure firm Cerebras.
That fund appears to show a “high hit rate” with “no known impairments today,” according to the letter.
“This is a unique moment in history,” Tiger wrote, referencing AI’s promise. “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.”
