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…
