Key Takeaways
- • Parataxis Capital expects to triple assets under management for its $35.6 million Digital Yield Fund by year-end 2022 and targets $500 million by end-2023, according to co-founder and CEO Edward Chin in a CoinDesk interview.
- • Fairfax County Retirement Systems, a $6.8 billion Virginia pension fund, committed $35 million to the market-neutral yield farming fund in August 2022.
- • Parataxis currently manages about $116 million across three funds and primarily serves institutional investors including banks, family offices and pension endowments.
- • The $500 million target is based on conversations with the firm's allocators, according to Chin, who said the strategy was designed around what prospective limited partners want.
Summary
Multi-strategy crypto investment firm Parataxis Capital expects to triple the assets under management for its $35.6 million Parataxis Digital Yield Fund by the end of 2022, with a further target of $500 million by the end of 2023, co-founder and CEO Edward Chin told CoinDesk. Chin said the target is based on conversations with the firm's allocators, who help institutions decide where to invest.
Parataxis currently has about $116 million in assets under management and primarily focuses on institutional investors such as banks, family offices and pension endowments. The market-neutral Digital Yield Fund drew attention in August when the Fairfax County Retirement Systems, the pension fund for Fairfax County, Virginia, which has $6.8 billion in assets, said it would invest $35 million in the yield farming fund. Fairfax, one of the first U.S. pensions to invest in crypto, made a two-part bet on yield farming, a strategy aimed at generating the highest possible returns on crypto assets through a variety of methods.
The firm also manages the multi-strategy Absolute Return Fund, which adjusts its approach according to the current market cycle and had $69.5 million in assets as of its most recent filing in April. The $9.6 million Special Opportunities Fund focuses on what Parataxis calls liquid venture capital, making seed-stage investments in "promising protocols and token-based technologies," Chin said.
Parataxis was founded three years ago by Chin and Thejas Nalval, who serves as chief investment officer. Chin, a U.S. Army veteran, said the firm is a disabled veteran-owned small business. He previously worked as an investment banker at digital asset banks Galaxy Digital and Element Group and spent years in traditional finance, including Credit Suisse. Nalval was previously a portfolio manager at crypto hedge fund LedgerPrime, met Chin at Element Group, and spent eight years at Goldman Sachs, most recently as a trader in its macro trading group.
Chin described the firm's product development approach: "We try to understand what's important to our prospective limited partner base and try to develop products and investment strategies that would appeal to them versus creating something and hoping the market would get there."
Parataxis currently has about $116 million in assets under management and primarily focuses on institutional investors such as banks, family offices and pension endowments. The market-neutral Digital Yield Fund drew attention in August when the Fairfax County Retirement Systems, the pension fund for Fairfax County, Virginia, which has $6.8 billion in assets, said it would invest $35 million in the yield farming fund. Fairfax, one of the first U.S. pensions to invest in crypto, made a two-part bet on yield farming, a strategy aimed at generating the highest possible returns on crypto assets through a variety of methods.
The firm also manages the multi-strategy Absolute Return Fund, which adjusts its approach according to the current market cycle and had $69.5 million in assets as of its most recent filing in April. The $9.6 million Special Opportunities Fund focuses on what Parataxis calls liquid venture capital, making seed-stage investments in "promising protocols and token-based technologies," Chin said.
Parataxis was founded three years ago by Chin and Thejas Nalval, who serves as chief investment officer. Chin, a U.S. Army veteran, said the firm is a disabled veteran-owned small business. He previously worked as an investment banker at digital asset banks Galaxy Digital and Element Group and spent years in traditional finance, including Credit Suisse. Nalval was previously a portfolio manager at crypto hedge fund LedgerPrime, met Chin at Element Group, and spent eight years at Goldman Sachs, most recently as a trader in its macro trading group.
Chin described the firm's product development approach: "We try to understand what's important to our prospective limited partner base and try to develop products and investment strategies that would appeal to them versus creating something and hoping the market would get there."
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