Kohlberg Kravis Roberts & Co, known as KKR Inc, is a US-based global investment firm, KKR & Co has long managed multiple assets and is now looking at crypto assets. The asset class managed by this firm spans real estate, energy infrastructure, private equity, credit and hedge funds.
KKR &Co manages its hedge fund business through strategic partners. The firm’s strategic partners include PAAMCO Prisma and Marshall Wace. As of December 2017, the strategic management partnership had $26.2 billion of assets under management (AUM).
A recent official press release revealed that KKR would partner with Avalanche Blockchain to tokenize the healthcare strategic growth fund. It noted that the tokenization would make the growth fund available to investors with no less than $5 million in investable assets.
Details of KKR Tokenized Growth Funds
KKR’s CEO and co-head of US private wealth, Dan Parat, issued a statement. He said the firm’s private investors have increasingly indicated interest in the fund. He explained that the Tokenized Fund could change operational inefficiencies and allow for ease of investment.
He added that the blockchain industry would contribute significantly to the future of private markets. For example, tokenization of the fund will remove obstacles that prevent private investors from accessing private equities, so that they can invest a smaller amount.
The growth fund is a USD 4 billion instrument for investing in start-up healthcare companies in Europe and North America.
Parat said the tokenized funds from Avalanche would allow qualified investors to buy KKR’s growth fund. However, the 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 can buy the growth funds.
Previous KKR involvement in crypto investments
KKR is not new to the crypto industry. However, it has gradually extended 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 buying a stake in ParaFi Capital. ParaFi Capital is a crypto investment and technology company.
KKR also participated in a $640 million Dragonfly Fund III fundraising. Dragonfly Fund III is the third fundraising by 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 fundraiser was for the expansion of Animoca’s gaming powerhouse, but KKR ended up not experiencing it due to the extreme market conditions.
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