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Digital asset firm Securitize Capital is set to tokenize asset management firm KKR’s $491 billion Healthcare Strategic Growth Fund II (HCSG II) on the Avalanche blockchain.

The news was shared by KKR on September 13, with the HCSG II tokenization described by Securitize Capital head Wilfred Daye as a “significant breakthrough” for individual access to private equity markets.

The tokenization allows investors to hold a token representing a share of the $4 billion healthcare-focused fund that invests in 23 North American and European companies specializing in the pharmaceutical, medical device and life sciences sectors. life.

In order to buy into the HCSG II Fund on Securitize Protocol, investors must submit their passport, fill in personal and tax information, and complete a “liveness check” in order to be reviewed. Investors are also subject to a management fee of 0.50%.

Ava Labs Founder and CEO, Emin Gün Sirer, said the tokenization of the HCSG II fund marks a “significant milestone” for the blockchain industry by enabling “real-world assets” to move on-chain:

KKR said on-chain tokenization of real-world assets also “reduces investment minimums, improves onboarding and compliance protocols for digital investors, and increases liquidity potential through a regulated alternative trading system.”

Related: Tokenization, explained

The potential of tokenization to capture a large share of global assets has also been recognized by the Boston Consultant Group (BCG) and Raiffeisen Bank International’s Blockchain Research Hub.

BCG predicted that $16.1 trillion in illiquid assets will be tokenized by 2030, while Raiffeisen Bank International’s Blockchain Research Hub predicted last year that most securities will be tokenized by 2030.

Securitize Capital operates the Securitize protocol, which was integrated into the Avalanche blockchain in December 2020 and is focused on “reinventing private capital markets by providing trusted end-to-end security token solutions”.