Securitize, a leading provider of digital asset securities revealed the creation of a fund symbolizing an interest in KKR’s Health Care Strategic Growth Fund II (“HCSG II”) on the public blockchain Avalanche. This is an important step towards increasing individual investors’ accessibility to institutional private market methods.
According to Carlos Domingo, CEO of Securitize, by enabling technological and product breakthroughs that were previously unachievable, tokenization has the potential to overcome many of the significant hurdles for individual investors looking to join private market investing. .
“This new fund, which offers more easily accessible institutional-grade assets, is an important step towards democratizing access to private equity investing.”
According to the CEO, Previously, high net worth individuals and large institutional investors had the most access to investments in private market funds. Expanding access to private market investment has long been a problem for the market.
Impacts of tokenization on public blockchains
He is also optimistic that tokenization will help solve this problem by enabling technology to lower investment minimums, improve onboarding and compliance standards for digital investors, and increase liquidity opportunities through a regulated alternative trading system.
The new Securitize tokenized fund (the “Fund”) is the first access to one of KKR’s alternative investment strategies to be available digitally in the United States. The fund provides exposure to KKR’s healthcare growth equity investment strategy and is managed by Securitize Capital, the digital asset management division of Securitize.
According to Dan Parant, managing director and co-head of U.S. private banking at KKR, blockchain technology has the ability to play a key role in the future of private markets through its ability to reduce operational inefficiencies and improve ease. of use for individual investors.
“We are delighted to partner with Securitize as the first user of this technology and look forward to making our assets available to a wider range of investors.”
Securitization and its objectives
The goal of digital asset securities firm Securitize is to make it easier for investors to buy and sell alternative assets, as well as to enable companies to raise funds, manage their shareholders and give possible cash investors. With a community of over 1.2 million investors and 3,000 connected businesses, Securitize has developed the first all-digital, all-in-one platform for issuing, servicing and trading digital asset securities.
KKR VS Avalanche
First international investment Companyy KKR provides capital markets, insurance solutions and alternative asset management. By adopting a careful and disciplined investment strategy, hiring top talent, and encouraging the growth of its portfolio companies and communities, KKR hopes to produce lucrative returns on investment.
In addition to having strategic partners who manage hedge funds, KKR sponsors investment funds that invest in real estate, private equity and credit. Under the supervision of Global Atlantic Financial Group, KKR’s insurance companies offer pension, life insurance and reinsurance products.
Avalanche is an eco-friendly smart contract platform built for the size of the global financial system. It features breakthrough scaling technology that enables organizations and individuals to create custom blockchains as a service and near-instant transaction finality. Avalanche and network-based projects are developed and supported by the Ava Labs team. According to finality time metrics, Avalanche is the fastest smart contract platform in the blockchain industry. Moreover, Avalanche is really fast and inexpensive.
According to John Wu, President of Ava Labs, financial markets need innovation, and over the past two years real-world assets have evolved dramatically, moving on-chain and fulfilling the promise of game-changing technology. for institutions. He adds that
“Major investment firms will undoubtedly make more use of blockchain technology now that they have the tools and information to build an effective plan through this strategic alliance.”