The Kohlberg Kravis Roberts & Co, known as KKR Inc, is an American-based global investment company, KKR & Co has long been managing multiple assets and is now eyeing crypto assets. The class of assets managed by this firm cut across real estate, energy infrastructure, private equity, credit, and Hedge funds.
KKR &Co manages its Hedge funds business through strategic partners. The firm’s strategic partners include PAAMCO Prisma and Marshall Wace. As of December 2017, the strategic manager partnership accounted for $26.2 billion of assets under management (AUM).
A recent official press release revealed that KKR would partner with Avalanche Blockchain to tokenize its Health care Strategic Growth Fund. It noted that the tokenization would make the growth fund accessible to investors with not less than $5 million in investible assets.
Details Of KKR Tokenized Growth Funds
KKR’s managing director and co-head of US private wealth, Dan Parat, released a statement. He said that the firm’s private investors have increasingly indicated an interest in the fund. He explained that the Tokenized Fund could modify operational inefficiencies and allow for easy investment.
He added that the blockchain industry would contribute significantly to the future of private markets. For example, tokenizing the fund will remove obstacles that hinder private investors’ access to private equities, enabling them to invest a smaller amount.
The growth fund is a $4 billion instrument for investing in start-up healthcare companies in Europe and North America.
Parat said that the tokenized funds from avalanche would allow qualified investors to purchase the KKR’s growth fund. However, the investors must hold the fund for one year before selling it in the secondary market.
In addition, the secondary market will be monitored, and only qualified buyers can purchase the growth funds.
Previous KKR’s Involvement In Crypto Investment
KKR is not new in the crypto industry. However, it has been gradually extending its roots into the crypto industry. The global investment company actively started crypto investments in 2021.
KKR first invested in blockchain technology in September 2021 after purchasing a stake in ParaFi Capital. ParaFi Capital is a Crypto investment and technology firm.
KKR also took part in a $640 million Dragonfly Fund III fundraiser. Dragonfly Fund III is the third Fundraising of Dragonfly Capital, which aims to ‘develop a new digital economy.
KKR, in its quest to expand its crypto investments, also planned to participate in the $100 million Fundraising of Animoca Brands. The Fundraising was for the expansion of Animoca’s gaming powerhouse, but KKR ended up not experiencing it due to the extreme market conditions.
Featured image from Pexels, chart from TradingView.com
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