Key Takeaways
- • Lennertz & Co., a German multifamily office, is raising $165 million (€150 million) for its third blockchain-focused fund of funds, positioning itself as one of the largest funds of funds in the crypto investment space.
- • The fund has already achieved its first close, according to Oksana Tiedt, Lennertz's head of fund investments, though the specific first-close amount was not disclosed.
- • Lennertz plans to allocate capital across 8–10 blockchain venture capital funds, including established players like Multicoin, Polychain, Hack VC, and generalist firms with crypto strategies such as Bain Capital, Lightspeed, and Andreessen Horowitz.
- • The firm is launching the fund partly due to outperformance of its blockchain holdings relative to traditional private equity and venture investments, with Tiedt noting that crypto funds are generating real distributions while traditional PE/VC faces a challenging fundraising environment.
- • This represents Lennertz's third crypto vehicle since entering the blockchain space in 2016, following a $35 million fund of funds in 2020 and a $65 million fund in 2022.
Summary
Lennertz & Co., an owner-managed multifamily office established in 2015, has launched fundraising for its third blockchain-focused fund of funds with a $165 million target. The German investment firm, which operates across multiple asset classes including private equity and traditional venture capital, has already recorded a first close on the vehicle, though the specific amount raised at that milestone remains undisclosed.
The firm's entry into blockchain investing began around 2016 with private investments in a single fund before formalizing its strategy through two prior fund-of-funds vehicles: a $35 million fund launched in 2020 and a $65 million fund in 2022. Rather than making direct investments in blockchain companies or token deals, Lennertz invests in other cryptocurrency-focused venture capital firms and generalist funds with crypto strategies. Its portfolio of fund managers includes well-known crypto VCs such as Multicoin and Polychain, alongside larger multistrategy firms like Bain Capital, Lightspeed Venture Partners, and Andreessen Horowitz.
The decision to raise a third fund comes at a time when traditional venture capital and private equity are grappling with distribution challenges and a constrained fundraising environment. According to Tiedt, Lennertz observed that its blockchain holdings have outperformed other asset classes, generating what she characterized as "real distributions" to investors. She attributed this relative strength to the fundamental performance of the underlying crypto venture funds, contrasting blockchain's resilience with broader private markets challenges. The timing also reflects modest recovery in digital asset markets following Bitcoin's spot ETF approval in early 2024, though major cryptocurrency prices remain largely stagnant with limited appetite for new token launches.
The fund plans to deploy capital across 8–10 blockchain venture funds, with a focus on U.S.-based managers while maintaining exposure to European opportunities. This allocation strategy reflects Lennertz's continued conviction in the blockchain venture ecosystem despite recent industry volatility, including the 2022 collapse of FTX and the broader crypto downturn that followed the 2021 bull market.
The firm's entry into blockchain investing began around 2016 with private investments in a single fund before formalizing its strategy through two prior fund-of-funds vehicles: a $35 million fund launched in 2020 and a $65 million fund in 2022. Rather than making direct investments in blockchain companies or token deals, Lennertz invests in other cryptocurrency-focused venture capital firms and generalist funds with crypto strategies. Its portfolio of fund managers includes well-known crypto VCs such as Multicoin and Polychain, alongside larger multistrategy firms like Bain Capital, Lightspeed Venture Partners, and Andreessen Horowitz.
The decision to raise a third fund comes at a time when traditional venture capital and private equity are grappling with distribution challenges and a constrained fundraising environment. According to Tiedt, Lennertz observed that its blockchain holdings have outperformed other asset classes, generating what she characterized as "real distributions" to investors. She attributed this relative strength to the fundamental performance of the underlying crypto venture funds, contrasting blockchain's resilience with broader private markets challenges. The timing also reflects modest recovery in digital asset markets following Bitcoin's spot ETF approval in early 2024, though major cryptocurrency prices remain largely stagnant with limited appetite for new token launches.
The fund plans to deploy capital across 8–10 blockchain venture funds, with a focus on U.S.-based managers while maintaining exposure to European opportunities. This allocation strategy reflects Lennertz's continued conviction in the blockchain venture ecosystem despite recent industry volatility, including the 2022 collapse of FTX and the broader crypto downturn that followed the 2021 bull market.
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