SECONDARIES (Pitchbook)
Exclusive: Tiger Global opens full portfolio to individual bids in search of liquidity
By Marina Temkin, June 15, 2023
SUMMARY OF THE ARTICLE:
- Tiger has accumulated a vast portfolio of late-stage companies, backing 315 companies across 355 deals in 2021 alone, according to PitchBook data. It now holds stakes in some of the biggest names in VC, including Chime, Databricks, Brex and Cohere. Many of those investments came with hefty valuations: In 2021, Tiger led deals to back fintech Revolut at a $33 billion post-money valuation and self-driving car startup Nuro at an $8.6 billion valuation.
- Tiger has been attempting to generate liquidity after its pandemic-era shopping spree for months. It initially tried to sell a percentage of its stakes in about 30 companies in the strip sale, but those attempts were unsuccessful
- In a strip transaction, buyers become LPs in a portfolio of assets, and the GP retains some future upside in the remaining portion of these companies. In contrast, when buying stakes in specific companies, usually referred to as a secondary direct transaction, a buyer is added directly to the cap table of a single company.
- Unlike the strip sale, many parties are expressing preliminary interest in Tiger's individual assets.
- Tiger Global has told select secondary investors they can bid on any private company in its portfolio after a lead buyer didn't emerge for a portfolio of assets packaged in a strip sale
Exclusive: Tiger Global opens full portfolio to individual bids in search of liquidity
By Marina Temkin, June 15, 2023
SUMMARY OF THE ARTICLE:
- Tiger has accumulated a vast portfolio of late-stage companies, backing 315 companies across 355 deals in 2021 alone, according to PitchBook data. It now holds stakes in some of the biggest names in VC, including Chime, Databricks, Brex and Cohere. Many of those investments came with hefty valuations: In 2021, Tiger led deals to back fintech Revolut at a $33 billion post-money valuation and self-driving car startup Nuro at an $8.6 billion valuation.
- Tiger has been attempting to generate liquidity after its pandemic-era shopping spree for months. It initially tried to sell a percentage of its stakes in about 30 companies in the strip sale, but those attempts were unsuccessful
- In a strip transaction, buyers become LPs in a portfolio of assets, and the GP retains some future upside in the remaining portion of these companies. In contrast, when buying stakes in specific companies, usually referred to as a secondary direct transaction, a buyer is added directly to the cap table of a single company.
- Unlike the strip sale, many parties are expressing preliminary interest in Tiger's individual assets.
- Tiger Global has told select secondary investors they can bid on any private company in its portfolio after a lead buyer didn't emerge for a portfolio of assets packaged in a strip sale
