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Centri’s Curtis Farrow Featured in Buyouts Insider: Impact of Tiger Global’s Secondary VC Deal

Centri’s Curtis Farrow, Managing Director and Private Equity and Venture Capital Practice Leader, is featured in a Buyouts Insider article about Tiger Global’s secondaries deal.

Tiger Global, a large venture capital firm (VC), has a secondaries deal that is causing concern among limited partners (LPs) and fueling a debate regarding valuations. Tiger Global’s plan to sell stakes in its portfolio has LPs closely monitoring the deal prices. If the bids come in at a significant discount, LPs may question other VCs invested in the same or similar assets about their valuations and why they haven’t taken commensurate write downs.

This situation could pose challenges for VCs raising new funds, as they may need to justify both their valuations and methodology to potential investors. LPs may also face general limitations on the exposure and allocation to this asset class. If successful, the sale has the potential to impact current fundraising processes and could lead to LPs examining VC pricing and valuation practices more closely with respect to investor and financial reporting.

Curtis gives his perspective on the matter and commented that while the sale is a data point, it’s not the end-all-be-all factor for asset remeasurement. However, the secondaries deal could provide directional insight into where valuations are migrating within the ecosystem.

It is crucial for VCs (and private equity firms) to partner with experts to ensure that they utilize best practices within the valuation profession to produce reliable and timely financial information for their LPs. Centri’s Private Equity Advisory team knows that each investment is unique, which is why our experts take the time to assess needs and goals, dig into the details, and provide the desired level of support needed for the situation.

Contact us for more information.