Tiger Global Offers To Cut Its Fund Size

Tiger Global has offered to cut the size of its fifth private equity fund by up to 25%, according to one of the firm’s limited partners. Figures that a PE fund with hedge roots is more prone to doing the right thing than are most PE funds with PE roots…

For those unfamiliar with Tiger Global, it’s one of the cubs spawned by Julien Robertson’s Tiger Management hedge funds. It mostly seems to make direct investments in emerging markets, with a focus on the technology sector. There’s no website, so additional background is a bit tough to come by.

The fund in question is Tiger Global Private Investment Partners V, which closed on approximately $1.24 billion in early 2008 (according to a regulatory filing). According to our source, the firm is offering to cut LP commitments back by up to 25%, in 5% increments. Chances are that not all LPs will take full advantage of the offer but, if they did, that would reduce the fund size down to around $930 million.

It’s worth noting that the fund ammendment also includes several additional provisions, including an increase in the fund’s ability to make public-market investments. LPs will obviously read them carefully, to make sure that the 25% cut offer doesn’t come with unpalatable strings.

peHUB emailed Tiger Global chief Charles Coleman for comment, but did not receive a reply.