“Public market valuations declined quickly and meaningfully in our focus areas, subsequently depressing valuations and deal activity in private markets as the cost of capital increased,” according to the letter. Fundraising has become increasingly harder for firms this year, as institutional investors including pensions, endowments and family offices became overexposed to private equity.

PIP 16 will be Tiger Global’s 15th fund (it skipped No. 13). Its first close will be Jan. 18, and investors who participate will get a reduced management fee of 1.75%, the firm said in the letter. The fund will make investments over a period of at least two years. At $6 billion, it will be Tiger’s third-largest private vehicle. PIP 15 closed earlier in 2022 with a record $12.7 billion.

Over almost two decades, the PIP funds have generated a net internal rate of return of 24%, according to the letter. Twelve investments generated more than $1 billion of gains each. Still, the firm had to mark down underperformers, it said in the letter. Most of the fund’s bets were in early-stage companies, with an average investment size of $30 million -- less than the typical $50 million.

Tiger Global did 275 deals so far this year, compared with 383 for all of 2021, according to PitchBook data. The firm’s current portfolio of active investments are worth about $45 billion. “Fundamentals remain strong across the portfolio” and some of the larger companies “are preparing to go public when markets are supportive,” the firm said in the letter.