The Kohlberg Kravis Roberts & Co, known as KKR Inc, is a United States-based global investment firm. KKR&Co has been managing multiple assets for a long time and is now considering crypto assets. The asset class managed by this company covers real estate, energy infrastructure, private equity, credit and hedge funds.
KKR &Co runs its hedge fund business through strategic partners. The firm’s strategic partners are PAAMCO Prisma and Marshall Wace. As of December 2017, the partnership of strategic managers represented $26.2 billion in assets under management (AUM).
A recent official Press release revealed that KKR would partner with Avalanche Blockchain to tokenize its strategic healthcare growth fund. He noted that tokenization would make the growth fund accessible to investors with at least $5 million in investable assets.
KKR Tokenized Growth Fund Details
KKR Managing Director and Co-Head of US Private Wealth Dan Parat released a statement. He said private investors in the company have increasingly shown interest in the fund. He explained that the token fund could change operational inefficiencies and allow easy investment.
He added that the blockchain industry will contribute significantly to the future of private markets. For example, the tokenization of the fund will remove barriers that hinder private investors’ access to private stocks, allowing them to invest a lesser amount.
The Growth Fund is a $4 billion vehicle for investing in early-stage healthcare companies in Europe and North America.
Parat said the avalanche token funds would allow qualified investors to purchase the KKR’s growth fund. However, investors must hold the fund for one year before selling it on the secondary market.
In addition, the secondary market will be monitored and only qualified buyers will be able to buy the growth funds.
Previous KKR’s Involvement in Crypto Investing
KKR is not new to the crypto industry. However, he gradually extended his roots in the crypto industry. The global investment firm actively launched crypto investments in 2021.
KKR first invested in blockchain technology in September 2021 after taking a stake in ParaFi Capital. ParaFi Capital is a Crypto investment and technology company.
KKR also participated in a $640 million Dragonfly Fund III fundraiser. Dragonfly Fund III is Dragonfly Capital’s third fundraising, which aims to “develop a new digital economy”.
KKR, in its quest to expand its crypto investments, also planned to participate in Animoca Brands’ $100 million fundraiser. The fundraiser was for the expansion of Animoca’s gaming powerhouse, but KKR ultimately failed to take advantage of it due to extreme market conditions.
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