New Fund Unlocks Broader Access to Alternative
Investments Through Digital Ownership on Blockchain
Securitize, a leading digital asset securities firm, today
announced the launch of a fund tokenizing an interest in KKR’s
Health Care Strategic Growth Fund II (“HCSG II”) on the Avalanche
public blockchain. This is a major step toward making institutional
private market strategies more accessible to individual
investors.
The new Securitize tokenized fund (the “Fund”) marks the first
time exposure to one of KKR’s alternative investment strategies has
been offered in a digital format in the U.S. The Fund is managed by
Securitize’s digital asset management arm, Securitize Capital, and
provides exposure to KKR’s health care growth equity investing
strategy.
Historically, investments in private market funds have been
primarily available to large institutional investors and
ultra-high-net-worth individuals. Unlocking broader access to
private market investing has been a long-standing challenge for the
industry.
Tokenization helps solve for this by enabling technology to
deliver lower investment minimums, improved digital investor
onboarding and compliance protocols, and increased potential for
liquidity through a regulated alternative trading system.
“Tokenization has the potential to address many of the biggest
challenges for individual investors seeking to participate in
private market investing by enabling technological and product
innovations that were not possible before,” said Securitize CEO
Carlos Domingo. “This new fund is an important step toward
democratizing access to private equity investments by delivering
more efficient access to institutional quality products.”
KKR’s adoption of blockchain is also a significant step in
continuing to build a “blockchain bridge” from paper-based to
digital financial products.
“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,” said Dan Parant, Managing Director and
Co-Head of U.S. Private Wealth at KKR. “We’re excited to be working
with Securitize to be an early adopter of this technology and look
forward to opening our investments up to a new audience of
investors.”
The Securitize tokenized fund is offered under SEC Reg D 506(c)
and Securitize is tokenizing the Fund on the Avalanche public
blockchain. KKR’s HCSG II Fund, to which the Fund provides
exposure, invests in innovative health care companies in North
America and Europe with proven products and services that are
seeking a partner to commercialize and scale.
Avalanche is an eco-friendly smart contract platform built for
the scale of global finance. It features near-instant transaction
finality, and a novel scaling technology that enables both
institutions and individuals to build custom
blockchains-as-a-service. Ava Labs is a team supporting the
development of Avalanche, and projects building on the network.
“Financial markets demand innovation, and over the last two
years we’ve seen dramatic leaps forward in the evolution of real
world assets moving on-chain and delivering on the promise of
breakthrough technology for institutions,” said John Wu, President
of Ava Labs. “This strategic partnership will surely spur more
blockchain activity among leading investment firms who are now
equipped with both the technology and knowledge they need to form
an impactful strategy.”
“Securitize is now a leading tokenization and distribution
platform for investors and global asset managers,” said Wilfred
Daye, Head of Securitize Capital. “The tokenized fund we have
developed is a significant breakthrough in unlocking investor
access to private equity investments.”
As a leading digital asset securities firm, Securitize is a
leader in firsts: it operates the first and only end-to-end
platform leveraging blockchain to raise capital, onboard investors,
issue tokenized assets, and provide secondary trading; it launched
the first credit-rated tokenized fund in Japan; and is the first
blockchain-based firm to be a top 10 stock transfer agent.
About Securitize and Securitize Capital
Securitize is a digital asset securities firm with a mission to
provide shareholders access to invest in and trade alternative
investments, and for companies to raise capital, manage
shareholders, and offer shareholders potential liquidity.
Securitize has pioneered a fully digital, all-in-one platform for
issuing, managing and trading digital asset securities, consistent
with the existing U.S. regulatory framework, with a community of
over 1.2 million investors and 3,000 businesses connected.
Securitize is comprised of Securitize, Inc. and its subsidiaries
Securitize, LLC and Pacific Stock Transfer (both SEC-registered
transfer agents), Securitize Capital, LLC, Securitize Markets, LLC
(an SEC-registered broker-dealer, member of FINRA and SIPC, and
operator of the company’s alternative trading system). Learn more
at http://www.securitize.io.
Securitize Capital is the first digital asset management
platform that manages and tokenizes institutional-grade products,
leveraging a blockchain-enabled capital market structure, tailoring
innovative financial products that broaden investor access and
exposure to alternative assets, cryptocurrencies, and emerging
asset classes. Learn more at
www.securitize.io/securitize-capital.
About KKR
KKR is a leading global investment firm that offers alternative
asset management as well as capital markets and insurance
solutions. KKR aims to generate attractive investment returns by
following a patient and disciplined investment approach, employing
world-class people, and supporting growth in its portfolio
companies and communities. KKR sponsors investment funds that
invest in private equity, credit and real assets and has strategic
partners that manage hedge funds. KKR’s insurance subsidiaries
offer retirement, life and reinsurance products under the
management of Global Atlantic Financial Group. References to KKR’s
investments may include the activities of its sponsored funds and
insurance subsidiaries. For additional information about KKR &
Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and
on Twitter @KKR_Co.
About Avalanche
Avalanche is the fastest smart contracts platform in the
blockchain industry, as measured by time-to-finality. Avalanche is
blazingly fast, low cost, and eco-friendly. Any smart
contract-enabled application can outperform its competition by
deploying on Avalanche. Don’t believe it? Try an app on Avalanche
today. https://www.avax.network/
Disclosures
Private market investments are speculative and considered risky,
including potential loss of your investment, and may not be
appropriate for every shareholder. Private investments are
generally an illiquid asset class; shareholders cannot sell their
funds when they want to without potentially facing high losses. Any
discussion of liquidity is purely speculative. Past performance is
not indicative of future results.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220913005384/en/
Media Securitize: Evan Wagner, evan.wagner@securitize.io
KKR: Miles Radcliffe-Trenner, media@kkr.com Ava Labs &
Avalanche: Patrick Sutton, patrick@avalabs.org
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