Charles “Chase” Coleman III’s Tiger Global Management is launching a new Internet-focused long-only fund and reopening its existing long-only fund to new investors.
The New York–based investment firm plans to launch Tiger Global Internet Opportunities and an offshore counterpart on January 1, with a target size of $1 billion to $1.5 billion, according to a letter to clients dated November 25 and obtained by Alpha.
The firm, which primarily manages hedge funds and private equity funds, also plans to reopen Tiger Global Long Opportunities, with the hope of raising $500 million to $1 billion of new capital. The firm will give priority to existing investors, according to the letter.
The new Internet fund will invest in the Internet “and all of its subcategories,” according to the letter. The firm tells clients that its long investments in the Internet sector have compounded at 37 percent gross and 31 percent net since inception.
The new Internet fund will be managed by Scott Shleifer, whom the firm says has been leading its public Internet investment efforts for more than a decade. “Insiders will be making a meaningful commitment” to the fund, the letter emphasizes.
“As we have said in the past, the Internet is likely to be the defining economic theme of our generation,” the firm states.
The new fund will charge a 1.25 percent management fee and a 20 percent performance fee after a 5 percent “compounding annual hurdle.” It will offer investors their choice of a 3, 4 or 5-year “rolling hard lock-up.”
