- Peter Thiel’s venture-capital firm is delivering huge returns for investors, according to The Wall Street Journal.
- Founders Fund is returning $US4.60 on every dollar invested as part of its fourth fund in 2011, The Journal said.
- The returns were buoyed by Founders Fund’s stakes in companies including Airbnb and Stripe.
Peter Thiel’s early investment in Facebook made him a billionaire. Now, the investments made through his venture-capital firm, Founders Fund, are apparently delivering huge returns for others.
Citing documents it reviewed, The Wall Street Journal reported that Founders Fund was returning $US4.60 on every dollar invested as part of its fourth fund in 2011.
That compares with an industry average of returns of $US2.11 for funds in the same year, according to figures from Cambridge Associates based on TVPI, which measures the total value created by a fund.
The returns, which The Journal said were accurate as of the third quarter of 2018, were buoyed by Founders Fund’s stakes in companies including Airbnb and Stripe.
Airbnb is expected to go public soon, as is another Founders Fund firm, Palantir Technologies, the data company cofounded by Thiel in 2003. Lyft and Elon Musk’s SpaceX are also part of Founders Fund’s portfolio.
Several investing partners have left Founders Fund over the past two years, including a founding partner, Luke Nosek. The investment vehicle recently hired Keith Rabois, a longtime friend of Thiel’s, according to The Journal.
“Peter’s been the most influential person in my career, and the ability to work with him again was just compelling,” Rabois said, per The Journal. “He’s the smartest person I’ve met.”
Founders Fund did not immediately respond to Business Insider’s request for comment.
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