Key Takeaways
- • ParaFi Capital, a New York-based digital asset manager, raised $120 million from investors including Theta Capital Management and Accolade Partners, according to Bloomberg.
- • The firm is pursuing a new strategy of acquiring general-partner stakes in other crypto funds focused on specific market segments, strategies or geographies.
- • ParaFi plans to build a portfolio of 30 to 50 GP stakes over the next three to five years, founder Ben Forman said in an interview.
- • KKR & Co. co-founder Henry Kravis is among ParaFi's backers.
Summary
ParaFi Capital, a New York-based digital asset manager, has raised $120 million from investors including Theta Capital Management and Accolade Partners, according to Bloomberg. KKR & Co. co-founder Henry Kravis is among the firm's backers.
The capital will be partly deployed in a new strategy for the firm: acquiring general-partner stakes in other crypto funds. Those target funds are focused on specific market segments, strategies or geographies. Ben Forman, ParaFi's founder, told Bloomberg in an interview that the firm plans to build a portfolio of 30 to 50 such stakes over the next three to five years.
The move marks a shift from ParaFi's traditional model of direct crypto investing toward owning a stake in the managers themselves, which would give it economic participation in the fee streams of multiple crypto fund managers. The source material does not provide further detail on fund sizes, valuations or the specific managers under consideration.
The capital will be partly deployed in a new strategy for the firm: acquiring general-partner stakes in other crypto funds. Those target funds are focused on specific market segments, strategies or geographies. Ben Forman, ParaFi's founder, told Bloomberg in an interview that the firm plans to build a portfolio of 30 to 50 such stakes over the next three to five years.
The move marks a shift from ParaFi's traditional model of direct crypto investing toward owning a stake in the managers themselves, which would give it economic participation in the fee streams of multiple crypto fund managers. The source material does not provide further detail on fund sizes, valuations or the specific managers under consideration.
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