Tiger Global Management, a renowned venture- and hedge-fund investor, is undergoing a significant management change. Chase Coleman, the founder of Tiger Global, has announced that he will be taking over both the public company investing and private equity businesses, while Scott Shleifer, the longtime head of the private equity division, will transition into a senior advisory role starting January 1. Shleifer’s new position as a full-time advisor has no specified end date, according to a source familiar with the matter.
Key Takeaway
Tiger Global Management announces a management change as founder Chase Coleman takes over public company investing and private equity businesses, while Scott Shleifer transitions to a senior advisory role. Shleifer’s decision to step down was primarily driven by his desire to remain in Florida, while the firm continues operations in-person from its New York offices. The firm has experienced both growth and challenges in recent years, with Shleifer leading the private equity division during a treacherous period. Despite setbacks, Tiger Global has seen positive returns fueled by AI-related stocks. The advisory role for Shleifer and the establishment of an Investment Committee aim to guide the firm’s future investments and asset dispositions.
The decision for Shleifer to step down from his leadership position was predominantly driven by his desire to remain in Florida, where he and his family have made their home. In contrast, Tiger Global continues its operations in-person from its New York offices. Chase Coleman noted that having everyone together in New York has proven to be highly productive and a more effective operating model for the firm.
Continued Growth and Evolution at Tiger Global
Tiger Global was founded in 2000 by Chase Coleman, a protégé of hedge fund pioneer Julian Robertson. Scott Shleifer joined the firm two years later, contributing to its growth and success. This recent management change is not the first for Tiger Global. In 2015, one of its investment heads, Feroz Dewan, left to establish his own investment firm, now known as Arena Holdings Management, in New York.
Following Dewan’s departure, Lee Fixel took charge of Tiger Global’s private equity business. Fixel, who joined the firm in 2006, decided to leave in March 2019 to pursue his own ventures. He subsequently founded Addition, where he raised multiple multibillion-dollar investment funds. Since Fixel’s departure, Shleifer and Coleman have continued as co-managers, overseeing the portfolios that Fixel previously managed. Shleifer eventually became the head of the private equity division.
A Challenging Period for Tiger Global
During Shleifer’s tenure as head of Tiger Global’s private equity division, the firm faced a challenging period. Despite announcing impressive commitments for its 12th fund in January 2020, which reached $3.75 billion, the firm struggled with its investment strategy. Tiger Global made bold and rapid-fire bets amidst already inflated valuations. Initially, investors were pleased with the strategy and rewarded Tiger Global by closing a $12.7 billion vehicle in just four months of fundraising in March 2022.
Unfortunately, the fund’s timing proved unfavorable as the broader market experienced downward trends due to increasing interest rates. As a result, Tiger Global’s portfolio returns suffered. Despite marketing efforts for the newest fund, Private Investment Partners Fund 16, which began 13 months ago with a $6 billion target, the firm has yet to close the fund, according to sources.
Looking Ahead
Despite the challenges, Tiger Global has seen positive returns throughout the year, thanks in part to a surge in AI-related public stocks. However, the firm’s hopes of salvaging its private market returns through an early investment in OpenAI may be in jeopardy. Reports suggest that OpenAI’s ousted CEO, Sam Altman, is in discussions to join OpenAI investor Microsoft and potentially transfer much of OpenAI’s team to the corporate giant.
As Shleifer transitions to the advisory role, he will continue to provide guidance on Tiger Global’s investing activities across its range of private funds. Additionally, Tiger Global is establishing an Investment Committee for its Private Equity business, chaired by Chase Coleman. The committee, consisting of Evan Feinberg, Eric Lane, Griffin Schroeder, and Scott Shleifer, will support Coleman in reviewing new investments and overseeing asset dispositions.
