Securitize Capital Is Set to Tokenize a Share of KKR's $491 Billion HCSG II
- Market
Apr 19, 2024
RWA.Media
Securitize Capital announced the tokenization of a significant stake in the KKR Health Care Strategic Growth Fund II (HCSG II), a pioneering move in the financial technology sector. The event, powered by the Avalanche blockchain, heralds a new era of accessibility to private equity markets for individual investors.
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Under this initiative, investors can purchase tokens representing stakes in a $4 billion fund. HCSG II invests in 23 North America and Europe companies specializing in pharmaceuticals and medical devices. This process includes identity verification by providing a passport, detailed personal and tax information, and strict authentication of potential investors. Investors and life sciences. This strategic choice reflects a strong interest in high-growth healthcare sectors.
Rigorous Registration Process
Investors wishing to participate must undergo a rigorous registration process with Securitize. This process includes identity verification by providing a passport, detailed personal and tax information, and strict authentication of potential investors. Investors will also be charged a management fee of 0.50%.
Wilfred Dai, head of Securitize Capital, called this tokenization a “significant breakthrough.” It marks a shift toward democratizing investments traditionally available only to wealthy individuals or institutional investors.
Future of Asset Tokenization
The Boston Consulting Group predicts that $16.1 trillion of illiquid assets will be tokenized by 2030. Raiffeisen Bank International's Blockchain Research Hub also expects a significant shift to securities tokenization within the same timeframe.
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The Securitize platform, integrated with the Avalanche blockchain in December 2020, is expected to revolutionize private capital markets by providing secure, end-to-end asset tokenization solutions. This initiative by KKR and Securitize underscores the growing acceptance and adoption of blockchain technology in core asset management and sets a precedent for future investments in significant global markets.