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Chase Coleman’s Tiger Global Is Slashing the Value of Its Venture Holdings by 24%

(Bloomberg) -- Tiger Global Management marked down the value of its private funds by almost a quarter this year, contributing to a $42 billion decline in assets, one of the industry’s biggest ever.

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In addition, some of the previously private but now-public companies held by Tiger Global’s venture unit lost value, according to people familiar with the matter. A representative for Chase Coleman’s New York-based firm declined to comment.

The unit oversaw about $43 billion as of Sept. 30, down from $65 billion at year-end, after accounting for fundraising and redistributions to investors. The division marked down the value of its private investments by 24%. Assets in Tiger Global’s public investment arm shriveled to $15 billion from $35 billion, the people said.

That unit operates hedge, long-only and small crossover funds that all are on track for record losses this year. The hedge fund fell 54.6% this year through October.

As equity markets have tumbled this year, investors have been waiting to see when the valuations of closely held firms will follow. Tiger Global’s markdowns shed light on what some of the once high-flying private companies may be worth, particularly as many of them have struggled to access capital.

The money manager, which tends to focus on the technology and consumer sectors, uses a basket of comparable public stocks as well as corporate financial statements to determine how to price its private positions on a quarterly basis. The tech heavy Nasdaq Composite Index tumbled 29% this year through Tuesday.

Read more: Tiger Global’s $65 Billion Man Shrugs Off China Crackdown Threat

Stripe, Instacart and now-bankrupt crypto exchange FTX are among companies Tiger Global marked down. Meanwhile, the firm’s most recent and largest venture fund has raised its valuations for almost 40 companies this year in the wake of acquisitions or subsequent funding rounds, one of the people said.

The tumult follows last year’s rapid expansion of the private investing unit, run by Scott Shleifer, as it tripled assets and backed 377 companies, according to PitchBook.

Read more: Stripe Tells Staffers Internal Valuation Dropped More Than 27%

Tiger Global managed about $58 billion in total assets as of September, down from $100 billion at year-end.

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