Sep 15, 2022 12:25
<p class="MsoNormal text-align-justify">Securitize, a digital asset securities company,
on Tuesday introduced a tokenized fund that provides exposure to global
investment firm KKR’s Health Care Strategic Growth Fund II (HCSG II).</p><p class="MsoNormal">The HCSG II provides investment capital to
innovative healthcare companies in North America and Europe to go commercial and scale their growth. </p><p class="MsoNormal">Securitize said the new tokenized fund, which
was launched on smart contract platform <a href="https://www.financemagnates.com/cryptocurrency/news/avalanche-foundation-introduces-290-million-incentive-program/">Avalanche</a>, is the first time
KKR’s institutional-grade fund made available to individual investors
in the United States through a digital format.</p><p class="MsoNormal">The firm further noted that the launch marks “a
major step toward making institutional private market strategies more
accessible to individual investors.”</p><p class="MsoNormal">Securitize in <a href="https://securitize.io/press-releases/securitize-kkr-tokenized-fund">a press statement</a> disclosed that
the fund will be managed by Securitize Capital, its digital asset management
arm.</p><p class="MsoNormal text-align-justify">Carlos Domingo, Co-founder and CEO of Securitize,
told CoinDesk the tokenized fund is “a feeder fund of the main KKR healthcare
fund.”</p><p class="MsoNormal text-align-justify">‘A Long-Standing Challenge’</p><p class="MsoNormal text-align-justify">Securitize in the statement explained that
private market funds have historically been inaccessible to individual
investors as only <a href="https://www.financemagnates.com/tag/institutional/">large institutional investors</a> and ultra-high-net-worth
individuals could afford them.</p><p class="MsoNormal text-align-justify">“Unlocking broader access to private market
investing has been a long-standing challenge for the industry,” the digital
asset securities firm noted.</p><p class="MsoNormal text-align-justify">“Tokenization helps solve 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,” Securitize explained.</p><p class="MsoNormal">Domingo explained further that tokenization
provides potential solutions to the several challenges blocking individual
investors from participating in private market investments. </p><p class="MsoNormal">Tokenization powers technological and product
innovations that were previously unconceivable, he further noted.</p><p class="MsoNormal">“This new fund is an important step towards
democratizing access to private equity investments by delivering more efficient
access to institutional quality products,” the CEO said.</p><p class="MsoNormal text-align-justify">Also, speaking in the statement, Dan Parant, the
Managing Director and Co-Head of US Private Wealth at KKR, noted that the top
investment firm is glad to be an early adopter of <a href="https://www.financemagnates.com/tag/blockchain-technology/">blockchain technology</a>.</p><p class="MsoNormal">“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,” Parant said.</p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
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