D1 Capital Partners

D1 Capital Partners is an American investment firm based in New York City, United States. The firm invests in both public and private markets globally.

D1 Capital Partners L.P.
TypePrivate
IndustryHedge Fund
Venture Capital
FoundedJuly 2018 (July 2018)[1]
FounderDaniel Sundheim[1]
HeadquartersSolow Building, 9 West 57th Street, New York City, New York, U.S.[2]
ProductsInvestments
AUMUS$24 billion (2022)[3]
Number of employees
65 (2022)
Footnotes / references
[4]

Background

D1 Capital Partners was founded in July 2018 by Daniel Sundheim.[1] "D1" stands for "Day One,"[5] a concept espoused by Amazon.com, Inc.'s Jeff Bezos as detailed in Amazon's 1997 Letter to Shareholders.[6] Sundheim was previously the Chief Investment Officer of Viking Global Investors[7] and put in more than $500 million of his own money to start the firm.[8] D1 Capital Partners is usually grouped with other Tiger Cub funds due to the firm being spun out from one.[9]

The firm originally managed $3 billion of capital, which rose to $20 billion by the end of 2020 with annualized returns of nearly 30%.[8] D1 returned 60% in 2020.[7]

In January 2021, the firm lost $4 billion (20% of its capital) due to the GameStop short squeeze.[7] As of April 2021, D1 had recouped about 90% of what it lost in January.[8]

In June 2021, the firm signed a 10-year lease to open another office in Miami, Florida.[10]

In May 2022, It was reported that the fund lost 23% of it value since start of the year with its public equities strategy losing 44%.[11]

Business Overview

D1 Capital Partners focuses on companies within the consumer, business services, financial services, healthcare, industrials, real estate, and technology, media and telecommunication sectors.

Regarding the public markets, the firm invests in publicly traded equities and other related securities such as equity derivatives and convertible bonds. It utilizes a global Long/short equity strategy with a focus on medium to long-term returns.[12]

Regarding the private markets, the firm primarily focuses on taking later-stage, non-controlling stakes in companies in order to help them further expand.[13]

Private Equity Funds
Fund Vintage Year Committed Capital ($m)
D1 Iconoclast Holdings LP 2018 USD 173.65
D1 Jasper Holdings LP 2019 USD 12.9
D1 Lion Holdings LP 2019 USD 44
D1 SX Holdings LP 2020 USD 26.75
D1 CL Holdings LP 2021 USD 39

Notable venture capital investments

References
  1. Levy, Rachael (5 November 2018). "D1 Capital Partners, a New Hedge Fund, Falters". Wall Street Journal.
  2. "Hedge Fund Leases Full Floor Office Space at 9 West 57th Street". Hedge Fund Office Spaces. 10 November 2017.
  3. "Hedge Fund D1 Borrowed Billions for a Hot Bet That Now Faces Reckoning". Bloomberg.com. 8 June 2022.
  4. "FORM ADV" (PDF). SEC.gov.
  5. "Daniel Sundheim Is Planning to Raise $4 Billion Cap for New Hedge Fund". Bloomberg.com. 17 April 2018.
  6. "1997 Letter to Shareholders - Amazon" (PDF). Amazon.com. 17 April 2017.
  7. "Dan Sundheim's $20 Billion D1 Capital Loses About 20% This Month". Bloomberg.com. 28 January 2021.
  8. "Sundheim's D1 Shakes Off Its $4 Billion Reddit-Fueled Fiasco". Bloomberg.com. 21 April 2021.
  9. "Tiger Cubs Crushed by Same Stocks That Made Hedge Funds Billions". Bloomberg.com. 2022-05-13. Retrieved 2022-06-09.
  10. "D1 Capital Partners Signs 10-Year Lease to Open Miami Location". Commercial Observer. 2021-06-07. Retrieved 2021-06-09.
  11. "Hedge Fund D1 Borrowed Billions for a Hot Bet That Now Faces Reckoning". Bloomberg.com. 2022-06-08. Retrieved 2022-06-09.
  12. "D1 Capital Partners Review - SmartAsset | SmartAsset.com". SmartAsset.
  13. "Sundheim Is Said to Plan $4 Billion Cap as New Fund Lures Cash". BloombergQuint.
  14. "Robinhood raises $200M as IPO speculation swirls". Fortune. Retrieved 2021-05-07.
  15. "Airtable raises $185M and launches new low-code and automation features". TechCrunch. 14 September 2020. Retrieved 2021-05-07.
  16. "GitLab hauls in $268M Series E on 2.75B valuation". TechCrunch. 17 September 2019. Retrieved 2021-05-07.
  17. Amanda Gray (2021-01-28). "Sweetgreen Secures $156M Series J, Flat Round". Prime Unicorn Index. Retrieved 2021-05-07.
  18. "Scopely raises $340 million at a $3.3 billion valuation as gaming grabs investors' interest". TechCrunch. 28 October 2020. Retrieved 2021-05-07.
  19. "Delivery startup goPuff raises $380M at a $3.9B valuation". TechCrunch. 8 October 2020. Retrieved 2021-05-07.
  20. "Shippo raises $45M more at $495M valuation as e-commerce booms". TechCrunch. 23 February 2021. Retrieved 2021-05-07.
  21. Instacart. "Instacart Announces $600 Million in New Funding Led by D1 Capital Partners". www.prnewswire.com. Retrieved 2021-05-07.
  22. "TransferWise valuation spikes on stake sale to D1 Capital Partners". Finextra Research. 2020-07-14. Retrieved 2021-05-07.
  23. "Unity, now valued at $6B, raising up to $525M". TechCrunch. 26 July 2019. Retrieved 2021-05-07.
  24. "Warby Parker, valued at $3 billion, raises $245 million in funding". TechCrunch. 27 August 2020. Retrieved 2021-05-07.
  25. Meir Orbach (January 27, 2021). DriveNets raises $208 million in series B round, attains unicorn status. Calcalist.
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