A small group of elite investors are behind Uber's latest $1.2 billion fundraising effort and believe the company is set for a massive initial public offering in the next few years.
The new investors, according to a person familiar with the situation, believe Uber will hold an IPO in the next one to three years at a valuation of more than $100 billion. The current fundraising values the company at about $40 billion.
The leaders of the money raised this week are a group of hedge fund firms with ties to Tiger Management, according to the person. The hedge funds, including Glade Brook Capital Partners, Lone Pine Capital and Valiant Capital Partners, provided the "bulk" of the $1.2 billion according to the person, and Glade Brook, a $1.5 billion firm founded by Paul Hudson, led the round.
The rest of the capital came mostly from sovereign wealth funds and mutual funds. Iconiq Capital, a large, private money manager for ultrawealthy clients like Facebook's Mark Zuckerberg and Sheryl Sandberg, invested as well, according to the source.