Asset managers like Coatue, D1, Tiger Global, and more, known as the Tiger Cubs, are once again investing heavily in private markets after a tough 2022. These funds are allocating big money to private companies, riding the artificial intelligence boom in tech stocks and late-stage private companies.

The Tiger Cubs, including Tiger Global, are fueling sky-high valuations in private markets, with an increase in deal sizes. Public equity markets are strong, but hedge-fund stockpickers are turning to private markets for differentiation. D1 founder Dan Sundheim believes many private companies are better off staying private.

Coatue’s founder Philippe Laffont says public markets are desperate for new entrants, calling the IPO market broken beyond repair. Investing in private companies provides an easier way to bet on long-term potential. Tiger Global reworked its risk management processes after a painful 2022.

Smaller Tiger Cubs are returning to private markets, with funds like SurgoCap and Maverick Silicon making significant investments. Publicly traded chipmakers and tech giants investing in AI are top holdings for these managers. Valuations for private companies like OpenAI and Anthropic are surging, and the Tiger Cubs are ready to invest billions.

The Tiger Cubs are back in action, ready to invest in private markets and take advantage of the AI boom. Chase Coleman, founder of Tiger Global, expressed excitement about the opportunities ahead.

Read more at Yahoo Finance: From big checks to talk of a ‘broken’ IPO market, the Tiger Cubs are back in love with private deals