Private Equity Fund KKR Partners with Securitize to Place Portion of its PE Fund on Avalanche Blockchain
KKR & Co. (Kohlberg Kravis Roberts & Co.), which manages $491 billion worth of assets, is placing a portion of its private-equity funds available on the Avalanche public blockchain. The initiative is an effort by the investment company to increase access to private financial products.
In January, KKR concluded the $4 billion funding campaign for its second Health Care Strategic Growth Fund, the precursor of which was a $1.45 billion pool that concluded in 2017.
Qualified investors would likely include those with at least of $5 million in investable assets. They will be required to set up a digital wallet and register with Securitize. After completion of these steps, interested investors will be able to have an exposure in the KKR fund via a tokenized feeder fund.
As per executives, KKR’s action will be the initial time in the history of the United States that a big private equity company has made a portion of a fund accessible on the blockchain.
As per Dan Parant, co-head of US private wealth at KKR, people would be able to participate in tokenized funds with less capital than large funds. Furthermore , the digital onboarding method of Securitize will facilitate tracking transactions and vetting investors.
KKR, according to Parant, has been researching the potential of blockchain technology for the last few months. Nevertheless, the company awaited the maturation of the area. The business opted to trial it with the healthcare growth fund due to the considerable interest from private investors. The fund assists healthcare businesses in North America and Europe with rapid expansion. According to Parant, there has been considerable investor enthusiasm in the technique.
Carlos Domingo, chief executive officer of Securitize, mentioned:
“KKR has been the most inventive asset manager in terms of choosing this choice, and we trust that many others will take notice.”
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