Coatue Management, the hedge fund headed by “tiger cub” Philippe Lafont, raised $543 million for its second private equity fund—Private Fund II, according to PE Hub based on information from a person familiar with the matter.
Coatue aims to raise $750 million for Private Fund II, which was launched in January based on the hedge fund’s regulatory filing. Earlier this week, the hedge fund disclosed that it raised $406 million from $175 investors.
It was reported that Coatue’s Private Fund II will focus investing in growth and late-stage companies in the media, telecommunications, and technology sectors, according to another person with knowledge of the matter.
Coatue said the firms working on the fundraising include Park Hill Group, JP Morgan Securities, and Credit Suisse Securities (USA) LLC.
Coatue Private Fund I
In 2013, Coatue launched the Private Fund I, which raised more than $300 million from investors. Its focus was to invest in high-growth pre-IPO start-ups. Thomas Laffont is managing the fund from an office in Menlo Park, California.
The following year, the hedge fund established a wholly foreign-owned enterprise called Coatue (Beijing) Investment, which is focused on investing in China’s internet sector, according to its regulatory filing.
Prior to investing in any company, Laffont first asks his staff to perform extensive research to determine its valuation based on fundamentals. He will also evaluate the Wall Street’s valuation of the company.
Over the past year, Coatue had been active in venture investing. The hedge fund joined TPG Growth in providing $150 million funding for Box, a data store company. It also participated in a $250 million funding for Lyft, a ride-sharing company.
The hedge fund also spearheaded a $45 million funding for HotelTonight, a hotel booking app developer. In March, Coatue together with Baidu and Kohlberg Kravis Robert invested $170 million in Uxin, a used car auction company based in Beijing.
Coatue manages approximately $94 billion of net client assets on a discretionary basis. The hedge fund held 61 long positions in equities with a market value of around $1billion as of June 30. Its major stock pick was Apple during the second quarter. The iPhone maker’s equities remain as one of the favorites of investors in the technology sector.