Tiger Global chief Scott Shleifer has moved into an advisory role after a wild ride

The company has been making rapid investments in startups for years, boosting valuations in some cases, but returns have been affected when the market has suddenly shifted.

Tiger Global Management is undergoing a major change in management. In a message from founder Chase Coleman sent this afternoon to the limited partners of the 22-year-old company, Coleman replaced both the publicly invested outfit company and private equity businesses, while the long-term when the latter’s head, Scott Shleifer, became a senior. advisor on January 1, a role that is a full-time position without an end date, per source with knowledge of the maneuver.

An active venture- and hedge-fund investor, Tiger’s private equity business was previously managed by Lee Fixel, who stepped down to hang up his own shingle in March of 2019. Fixel subsequently raised several multibillion- dollar investment fund in that company, called Addition.

At the time, Shleifer and Coleman continued as co-managers of the portfolios managed by Fixel, with Shleifer taking over as its head. But he has overseen what looks to be a turning point in what has proven to be a treacherous period for the company. After announcing in January 2020 that Tiger Global had secured $3.75 billion in commitments for its 12th fund, Schleifer put the pedal to the metal, overseeing an operation that made bold bets. at a rapid-fire clip despite heated valuations. At one point, investors were so happy with the strategy – which seemed to be working – that they gave Tiger a whopping $12.7 billion car that closed in March 2022 after just four months of fundraising.

The timing of the fund could not be worse. Due to the increase in interest, the public, then private, the broader market began to fall rapidly, and with it, the majority of the Tiger paper returned. In fact, although the company began marketing its latest fund, Private Investment Partners Fund 16, to investors 13 months ago, with a target of $6 billion, it has not yet closed, according to a source.

According to a first reported by Bloomberg, a surge in AI-related public stocks helped spur a rebound for Tiger this year; a source said it saw positive returns throughout the year. Meanwhile, an early bet on OpenAI that looked a week ago like it could help save the company’s private-market return is now in jeopardy, with ousted CEO Sam Altman reportedly discussions to join OpenAI investor Microsoft and transfer most of the OpenAI team to the giant company. fold.

According to Coleman’s letter to investors, Shleifer will continue to “advise our investment activities throughout extent of our private funds.” As part of the transition, Tiger Global has also “formed an Investment Committee for our Private Equity business,
which I will lead, consisting of Evan Feinberg, Eric Lane, Griffin Schroeder, and Scott, who will support me in reviewing new investments and managing asset dispositions.

This story is developing.

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