Securitize, a prominent provider of digital asset securities revealed the creation of a fund tokenizing a stake in KKR’s Health Care Strategic Growth Fund II (“HCSG II”) on the Avalanche public blockchain. This is a significant move towards increasing individual investors’ accessibility to institutional private market methods.
According to Carlos Domingo, CEO of Securitize, by enabling technology and product breakthroughs that were previously impractical, tokenization has the potential to address many of the significant barriers for individual investors looking to join in private market investing.
“This new fund, which offers more effectively accessible institutional-quality assets, is a significant step toward democratizing access to private equity investing.”
According to the CEO, Previously, ultra-high-net-worth individuals and large institutional investors have had the most access to investments in private market funds. Broadening access to private market investing has long been a problem for the market.
Impacts of Tokenization on public blockchains
He is also optimistic that tokenization will aid in solving this problem by enabling technology to enable reduced investment minimums, improved digital investor onboarding and compliance standards, and higher possibilities for liquidity through a regulated alternative trading system.
The newly launched Securitize tokenized fund (the “Fund”) is the first access to one of KKR’s alternative investing strategies to be made available in a digital format in the United States. The Fund offers exposure to KKR’s health care growth equity investment strategy and is run by Securitize Capital, the digital asset management division of Securitize.
According to Dan Parant, Managing Director and Co-Head of U.S. Private Wealth at KKR, blockchain technology has the capability to play a key role in the future of private markets with its ability to reduce operational inefficiencies and boost ease of use for individual investors.
“ We are thrilled to partner with Securitize as an early user of this technology and are looking forward to making our assets available to a wider range of investors.”
Securitize and its goals
The goal of the digital asset securities company Securitize is to make it easier for investors to buy and sell alternative assets, as well as to enable businesses to raise funds, manage their shareholders, and give investors possible liquidity. With a community of over 1.2 million investors and 3,000 enterprises connected, Securitize has developed the first fully digital, all-in-one platform for issuing, maintaining, and trading digital asset securities.
KKR VS Avalanche
Leading international investment Company KKR provides capital markets, insurance solutions, and alternative asset management. By adopting a careful and methodical investment strategy, hiring top-tier talent, and encouraging growth in its portfolio firms and communities, KKR hopes to produce lucrative investment returns.
In addition to having strategic partners that run hedge funds, KKR sponsors investment funds that invest in real estate, private equity, and credit. Under the supervision of Global Atlantic Financial Group, KKR’s insurance companies provide retirement, life, and reinsurance products.
Avalanche is an eco-friendly smart contract platform designed for the size of the world’s financial system. It has revolutionary scaling technology that enables both organizations and individuals to create customized blockchains-as-a-service and close-to-instantaneous transaction finality. Avalanche and projects based on the network are developed and supported by the Ava Labs team. According to time-to-finality metrics, Avalanche is the blockchain industry’s fastest smart contract platform. In addition, Avalanche is really quick and low cost.
According to John Wu, president of Ava Labs, financial markets require innovation, and in the last two years, real-world assets have evolved dramatically, moving on-chain and fulfilling the promise of ground-breaking technology for institutions. He adds that
“ Leading investment firms will undoubtedly use blockchain technology more now that they have the tools and information necessary to develop an effective plan thanks to this strategic alliance.”