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KKR offers tokenized exposure to private equity fund on Avalanche

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Global investment firm KKR has partnered with digital assets securities firm Securitize to offer tokenized positions for its clients with at least US$5 million in investible assets, exposing them to its US$4 billion health care equity fund, the Wall Street Journal reported.

See related article: Guide to tokens and NFTs: what is ‘tokenization’ and how does it work?

Fast facts

  • The tokenized position in the equity fund is reportedly the first to be offered by a major equity fund in the United States, according to unnamed executives cited by the Wall Street Journal.
  • Investors can sell the digital security on a Securitize-managed secondary market one year after purchase.
  • Dan Parant, co-head of U.S. private wealth at KKR, said the company had long considered blockchain technology and greenlit the move to tokenize a portion of its healthcare growth fund due to increasing demand from individual investors.
  • KKR had US$491 billion in assets under management as of June 30, 2022.
  • Tokenization can grant investors access to gated private markets by bypassing minimum capital requirements.
  • The asset tokenization market is projected to reach US$16 trillion by 2023, or 10% of the global GDP.

See related article: Tokenized assets can bring trillions of dollars to DeFi: JPMorgan, Onyx

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