- Investors have learned of a $10 million settlement Tiger Global made to a former employee.
- Others have raised concerns about work culture in conversations with Insider, particularly around the actions of her partner Scott Shleifer.
- Tiger is raising money for its latest fund, which has a goal of $6 billion.
Investors don’t really need another reason to turn away from Tiger Global Management after a year of terrible performance. But that’s exactly what they’re up against.
Sponsors are now learning of a $10 million payment Tiger made to a former employee over allegations of harassment and a culture hostile to women, people familiar with the matter told Insider. The settlement was first reported Thursday by Semafor.
Others have also raised concerns about work culture in conversations with Insider, particularly around the actions of her partner Scott Shleifer. Shleifer is an intense executive who will cut people off in meetings, talk to colleagues or push hard for his opinion, three people familiar with the matter told Insider. Some employees found the behavior abrasive and unprofessional, two of the three said.
“Scott was known to be a jerk,” a former employee told Insider. The sources were granted anonymity in order to speak freely without fear of reprisal.
The employee who settled with Tiger alleged that Tiger fostered a type of bro culture, run by men that prevented female executives from getting equal opportunities at the company. Insider knows the identity of the former employee and does not name her to protect her privacy. The former employee, who left Tiger about two years ago, did not respond to Insider’s requests for comment.
Tiger is run by billionaire Chase Coleman, a protege of late hedge fund titan Julian Robertson, who has deep roots in New York money and power. Coleman is a descendant of the state’s last Dutch governor, Peter Stuyvesant.
The allegations come to light in perhaps the worst fundraising environment in recent memory. With worries about inflation, rising interest rates and geopolitical upheaval sending tech stocks tumbling, investors like Tiger and the pensions and foundations that hand them their money have faced a difficult environment. Tiger posted double-digit returns in 2020. Last year was a much different picture, with a loss of 67% in its long-only fund and 56% for its hedge fund.
Tiger is raising money for its latest fund, Private Investment Partners 16, which has a target of $6 billion.
A person familiar with the matter suggested that fundraising for the fund, known as PIP 16, has been no less successful than that of other tech investors in this environment.
“We have worked hard to create a culture that embodies integrity, respect, humility, the pursuit of excellence and continuous improvement,” Tiger Global spokesperson Cara Major said in a statement. . “Putting these values first in our day-to-day interactions inside and outside of Tiger Global has been the glue that has sustained our success over the past 21 years. We remain committed to driving continuous improvement in Tiger Global as we look to the future. ”
Shleifer declined to comment through a spokesperson.
Tiger in Miami
Shleifer joined Tiger in 2002 as its first employee and co-founded its private equity investment arm. He moved to Miami during the pandemic and, according to the New York Post, bought former President Donald Trump’s former mansion there for $122.7 million in 2021.
Shleifer has been known to verbally attack people in meetings and tell junior employees their ideas are stupid, according to people who spoke to Insider.
His intensity could creep into his personal life. When Shleifer’s child was born, Shleifer was awake in the middle of the night emailing his colleagues, one of the people said.
It was all part of a hard-charging attitude that rubbed employees, including several women, the wrong way, sources told Insider. One person felt that teams can sometimes be pitted against each other, beyond a culture of healthy competition found in financial companies.
Shleifer’s aggressive attitude stands in stark contrast to the more affable demeanor that Coleman cultivates, the sources said.
One event caused unease among some Tiger staffers, according to a person who spoke to Insider. During a corporate gathering in Miami in early 2020, some employees went to a popular Miami nightclub called E11even.
“E11even is ridiculous. Not only is the place huge and always crowded, but it’s also a strip club,” The Infatuation wrote in a review of the venue. “There will be topless dancers twerking all around you, dollar bills flying through the air, and random aerial acrobatic performances happening in the center of the club.”
The event was not a strictly Tiger-sanctioned event, according to people who were aware of it. Coleman and Shleifer weren’t there.
While the company posted strong returns for investors, it was spending lavishly on employee benefits: a lavish winter party at Polo Bar, Ralph Lauren’s posh restaurant on Manhattan’s Upper East Side; a Halloween party where the winner of the costume contest won an expensive Lululemon mirror and a pet handler who entertained guests.
Nevertheless, as Tiger grew beyond its hedge fund roots and Coleman sought to further institutionalize his business, the form of Tiger’s leadership changed.
In 2021, the company hired Eric Lane, a longtime ex-Goldman Sachs executive and former co-head of the bank’s asset management division, in a newly created role as president and chief operating officer of Tiger. .
“We are always looking for ways to continue to improve as we look forward to the next 20 years,” Coleman and Shleifer wrote, according to the Financial Times, in a letter to investors announcing Lane’s appointment.
Last year John Curtius, who joined Tiger in 2017 from distressed debt investor Elliott Management and worked closely with Shleifer, left to set up his own fund.