Global fintech and funding innovation ecosystem

KKR Partners with Securitize to Launch Part of Health Care Fund on Avalanche’s Public Blockchain

WSJ | Miriam Gottfried | Sep 13, 2022

blockchain tokenized funds - KKR Partners with Securitize to Launch Part of Health Care Fund on Avalanche's Public BlockchainKKR & Co. is making a slice of one of its private-equity funds available on the public blockchain, in the latest bid to expand individual investors’ access to private investment vehicles.

  • Securitize, a leading digital asset securities firm, today announced the launch of a fund tokenizing an interest in KKR’s Health Care Strategic Growth Fund II (“HCSG II”) on the Avalanche public blockchain. This is a major step toward making institutional private market strategies more accessible to individual investors.
  • The new Securitize tokenized fund (the “Fund”) marks the first time exposure to one of KKR’s alternative investment strategies has been offered in a digital format in the U.S. The Fund is managed by Securitize’s digital asset management arm, Securitize Capital, and provides exposure to KKR’s health care growth equity investing strategy.
  • Executives said the move by KKR will be the first time a major private-equity firm has made a portion of a fund available on the blockchain in the U.S.
  • KKR managed about $70 billion of private-wealth assets as of the end of the second quarter, out of a total of $491 billion. It said last November it expects 30% to 50% of its annual fundraising will eventually come from wealthy individuals, up from 10% to 20% at the time.

See:  Binance’s co-founder, Yi He, Steps in the Limelight to Oversee $7.5 Billion Crypto Portfolio

  • A tokenized fund will allow individuals to invest smaller amounts than would be required of institutions and provide a smoother process for monitoring transactions and vetting investors through Securtize’s digitized onboarding process, as well as greater potential for liquidity, said Dan Parant, co-head of U.S. private wealth at KKR.
  • Qualified purchasers—generally those with at least $5 million in investible assets—who create a digital wallet and sign up with Securitize will be able to invest in the KKR fund via what will effectively be a tokenized feeder fund. After a year of holding the security, investors will be able to sell it to other qualified individuals on a secondary market managed by a unit of Securitize.

NCFA Jan 2018 resize - KKR Partners with Securitize to Launch Part of Health Care Fund on Avalanche's Public BlockchainThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - KKR Partners with Securitize to Launch Part of Health Care Fund on Avalanche's Public BlockchainFF Logo 400 v3 - KKR Partners with Securitize to Launch Part of Health Care Fund on Avalanche's Public Blockchaincommunity social impact - KKR Partners with Securitize to Launch Part of Health Care Fund on Avalanche's Public Blockchain

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - KKR Partners with Securitize to Launch Part of Health Care Fund on Avalanche's Public Blockchain




 

Leave a Reply

Your email address will not be published. Required fields are marked *

thirteen − eight =