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Tiger International’s Now-Nugatory FTX Wager Had Bain’s Due Diligence

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(Bloomberg) — Bain & Co. was amongst consulting corporations that helped conduct due diligence for Tiger International Administration’s funding in now-defunct crypto trade FTX, in line with folks conversant in the matter.

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Tiger International, which pays Bain greater than $100 million a 12 months to analysis non-public firms, has now written down its $38 million FTX stake to zero, the folks mentioned. Sam Bankman-Fried’s oversight of an enormous net of FTX-linked entities was one of many dangers highlighted throughout the due-diligence course of, however the cash supervisor nonetheless believed it was a sound funding on the time, one of many folks mentioned.

A consultant for Chase Coleman’s Tiger International declined to remark, and Bain didn’t instantly reply to messages searching for remark.

This month’s implosion of FTX has brought about billions of {dollars} of potential losses for buyers and sparked authorized and regulatory probes. It additionally prompted questions on how warning indicators have been missed by institutional buyers, together with hedge funds and enterprise capital corporations. Ontario Lecturers’ Pension Plan was amongst them, writing off its complete $95 million funding, whereas Sequoia Capital marked down its $214 million wager to zero.

Learn extra: Investor Studied Crypto For Years, Then Missed FTX’s Pink Flags

Tiger International’s FTX funding was a tiny portion of its $12.7 billion Non-public Funding Companions 15 fund. The agency first backed FTX in October 2021, when the crypto trade was valued at $25 billion, and once more in January at a $32.5 billion valuation, in line with PitchBook information.

The FTX wager was one in all 358 enterprise capital investments Tiger International made final 12 months, and one in all 290 to date in 2022, in line with PitchBook.

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