US investment giant KKR stands for Avalanche Blockchain Private Equity Fund

Global investment giant KKR & Co has partnered with digital asset management firm Securitize to tokenize its private equity fund on a public blockchain network.

According to an official press release, the partnership will allow KKR to tokenize the second healthcare strategic growth fund on the Avalanche blockchain, making it available to investors with at least $5 million in investable assets.

KKR Offers Token Funds to Investors

The Growth Fund is a $4 billion fund that invests in growing healthcare companies in North America and Europe.

Dan Barrant, managing director and co-chair of KKR’s US Private Wealth, said the company has received increased interest from individual investors in connection with the fund.

He also noted that tokenized funds remove many of the barriers that prevent individual investors from accessing private equity. For example, token funds allow individuals to easily access private equity while enabling them to invest small amounts.

“With its ability to digitize operational inefficiencies and increase ease of use for retail investors, blockchain technology has the potential to play an important role in the future of private markets,” Barrant added.

Using Securitize’s Avalanche Token Feeder Fund, qualified investors will be able to purchase KKR’s Growth Fund. Investors must hold the securities for one year before selling them to other eligible buyers in a secondary market operated by Securities.

Speaking about the development, Carlos Domingo, CEO of Securitize said:

“This new fund is an important step toward democratizing access to private equity investments by providing more efficient access to institutional quality products.”

KKR invests in crypto companies

Although this is KKR’s first token fund, the acquisition company has been relatively active in the crypto industry and has recently backed two crypto companies.

The private equity giant made its first blockchain investment in September 2021 after acquiring a stake in investment and technology company ParaFi Capital.

In April, KKR participated in a $640 million fundraising effort for crypto-focused investment firm Dragonfly Capital.

KKR also planned to participate in a recently concluded $100 million funding round for blockchain gaming powerhouse Animoca Brands but had to hold back due to the recent market crash.

Giant US post-private equity fund KKR has appeared on the Avalanche Blockchain for the first time on CryptoPotato.

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