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US 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.
KKR Offers Tokenized Funds to Investors
The growth fund is a $4 billion instrument that invests in growing healthcare companies in North America and Europe. He also noted that tokenized funds remove many of the barriers that prevent individual investors from accessing private stocks.
“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,” Parant added.
With the help of Securitize’s tokenized feeder fund on Avalanche, eligible investors will be able to purchase KKR’s growth fund. Speaking on the development, Securitize CEO Carlos Domingo said:
“This new fund is an important step toward democratizing access to private equity investments by delivering more efficient access to institutional-quality products.”
KKR Invests In Crypto Firms
Although this is KKR’s first tokenized fund, the acquisition company is relatively active in the crypto industry and has recently supported several crypto firms. The private equity giant made its first blockchain investment in September 2021 after buying a stake in crypto-native investment and technology firm ParaFi Capital. In April, KKR attended a $640 million fundraising event for crypto-focused investment firm Dragonfly Capital.