KKR offers tokenized exposure to private equity fund on Avalanche

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.

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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.

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