KKR has made a major move in allowing individuals access to its private equity funds by making one of its vehicles available to backers through a public blockchain.
Digital assets securities business Securitize has launched a fund tokenizing an interest in KKR’s Health Care Strategic Growth Fund II on the Avalanche public blockchain.
KKR closed HCSGF II on $4bn earlier this year, just shy of tripling the size of its $1.45bn predecessor fund I which was closed in 2017.
The new token marks the first time exposure to one of KKR’s alternative investment strategies has been offered in a digital format in the US.
KKR managing director and co-head of US private wealth, Dan Parant, said, “With its ability to digitize operational inefficiencies and increase ease of use for individual investors, blockchain technology has the potential to play an important role in the future of private markets.
“We’re excited to be working with Securitize to be an early adopter of this technology and look forward to opening our investments up to a new audience of investors.”
Securitize CEO Carlos Domingo added, “This new fund is an important step toward democratizing access to private equity investments by delivering more efficient access to institutional quality products.”
Avalanche is a smart contract blockchain platform, and a major competitor to industry heavyweight Solana.
Ava Labs president John Wu said, “Financial markets demand innovation, and over the last two years we’ve seen dramatic leaps forward in the evolution of real world assets moving on-chain and delivering on the promise of breakthrough technology for institutions.
“This strategic partnership will surely spur more blockchain activity among leading investment firms who are now equipped with both the technology and knowledge they need to form an impactful strategy.”
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