[NEW YORK] For the second time, Tiger Global Management has raised US$3.75 billion for a venture fund as investors clamor for more private-equity deals.
Clients were told about the closing of the Private Investment Partners XII fund in a letter Friday, according to a copy seen by Bloomberg. A spokesman for the firm declined to comment.
Chase Coleman's firm had to turn away some investor cash, as it had more than US$4 billion in demand for the newest pool, according to another letter, dated Jan 21. Investors have been eager to get into private equity as low interest rates have inhibited their ability to produce solid returns elsewhere.
The previous iteration of the fund, PIP XI, also raised US$3.75 billion when it closed in 2018. That amount exceeded its initial US$3 billion fundraising target. The venture funds specialise in backing technology startups like those in consumer internet, cloud and industry-specific software. They also focus on direct-to-consumer firms in the US, China and India. The latest PIP pools are Tiger Global's biggest venture funds to date.
Tiger Global has increasingly pushed into venture capital as its assets swelled. Now half of the firm's US$36 billion is in its venture unit, while the hedge fund manages US$10 billion and the remaining is in a long-only product.
Tiger Global's venture business has made more than 200 investments in 30 countries. Most notably, the firm won big when it made about US$3 billion on the back of its Flipkart Ltd investment.
The Wall Street Journal first reported the news of the fund's closing earlier Friday.
Firms led by Blackstone Group and Carlyle Group have amassed almost US$1.5 trillion in unspent capital, the highest year-end total on record, according to data compiled by Preqin.
While last year saw roughly US$450 billion worth of private equity deals, M&A (merger and acquisition) activity this year could be on a scale not seen since the financial crisis.