SCHEDULE: TCG Crossover Funds Disclose 9.2% Stake in Alector Inc.

TCG Crossover Fund II, L.P., TCG Crossover Fund III, L.P., and their related entities, along with Chen Yu, have reported a combined beneficial ownership of 9.2% in Alector, Inc.

Summary

• TCG Crossover Fund II, L.P., TCG Crossover GP II, LLC, TCG Crossover Fund III, L.P., TCG Crossover GP III, LLC, and Chen Yu have filed a Schedule 13G for Alector, Inc.
• Chen Yu, as the sole managing member of TCG Crossover GP II and TCG Crossover GP III, beneficially owns an aggregate of 10,000,000 shares of Alector, Inc. common stock.
• This aggregate ownership represents 9.2% of Alector, Inc.'s outstanding common stock.
• TCG Crossover Fund II, L.P. and TCG Crossover Fund III, L.P. each hold 5,000,000 shares, representing 4.6% of the class individually.
• The beneficial ownership is shared, with Chen Yu having shared voting and dispositive power over the 10,000,000 shares.
• The calculation is based on 109,151,472 shares of Common Stock outstanding as of October 31, 2025, as reported by Alector, Inc. in its Form 10-Q filed on November 6, 2025.
• The reporting persons certify that the securities were not acquired or held for the purpose of changing or influencing control of the issuer, other than activities solely in connection with a nomination under Rule 14a-11.

Sentiment

Score: 6

Explanation: The disclosure of a significant beneficial ownership stake by TCG Crossover Funds and Chen Yu in Alector, Inc. is generally viewed as a positive indicator of investor confidence. While the filing is purely factual and does not contain performance data, a substantial investment from a reputable firm suggests a belief in the company's long-term value.

Positives

• A significant institutional investor, TCG Crossover Funds, and an individual, Chen Yu, have taken a substantial 9.2% stake in Alector, Inc., potentially signaling confidence in the company's future prospects.
• The filing indicates a long-term, passive investment intent, as the securities were not acquired for the purpose of changing or influencing control, other than activities solely in connection with a nomination under Rule 14a-11.

Negatives

• NA

Risks

• NA

Future Outlook

NA

Management Comments

• The securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under Rule 14a-11.

Industry Context

The filing of a Schedule 13G by a crossover fund like TCG Crossover in a biotechnology company such as Alector, Inc. is a common occurrence, indicating an investment in a company that may be transitioning from private to public or is a public company with significant growth potential. Crossover funds often invest in both private and public rounds, supporting companies through various stages of development, particularly in high-growth sectors like biotech.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional investor taking a 9.2% stake could be perceived positively, potentially increasing investor confidence and demand for the stock.
• Management: The presence of a large, passive institutional investor may provide a level of oversight and strategic support, though the filing explicitly states no intent to influence control.

Key Dates

Keywords

Alector Inc., ALEC, Schedule 13G, beneficial ownership, TCG Crossover Fund II, TCG Crossover Fund III, Chen Yu, institutional investment, biotechnology, pharmaceuticals