👷‍♂️ KKR to the danger zone

Gooood morning, Rainmakers! ☀️

How have you been?? Did you miss me? I sure missed all of you!

Throughout my "sabbatical" I had the fortunate opportunity to finally make my way to CryptoValley in Switzerland to meet with some of our partners and make new connections.

Here are some of the pictures I took while there:

We have been working hard behind the scenes to bring you the best security token and Web3-focused newsletter on the planet!

From the very beginning, I have always focused on providing the latest and greatest security tokens each and every week in a fun, digestible manner... and that will never stop.

I have personified that in this video which shows my dedication to this newsletter and to all of you... Rainmakers:

But, of course, as always, I have two captivating topics for us to dive into:

1️⃣ 👷‍♂️ KKR has entered the danger zone: One of the largest PE firms in the world has tokenized part of its feeder fund on Avalanche!

2️⃣ Top headlines of the last couple of weeks: A security token exited with a 5x return, INX combined its crypto trading desk with its securities one, and more!

Without further ado, it's time to…

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👷‍♂️ KKR to the danger zone

KKR, one of the largest PE firms with $471B assets under management, just tokenized one of their funds on Avalanche blockchain hosted on the Securitize platform!

Not going to say that Security Token Market was the first security token on Avalanche, buttttt it's kind of a fact at this point.

"Lol, I don't care that you were first, but did you say a firm with $471B in AUM tokenized??"

Yes, I did!

This move has massive massive implications for our industry and for the financial system at large for that matter.

Essentially, KKR is opening up its Health Care Strategic Growth Fund open to a wider array of investors through the help of tokenization and Securitize via a feeder fund.

Let's get basic on this deal:

Feeder Fund Explanation: You can think of a feeder fund just how it sounds... it's essentially a sub-fund that lowers the barriers to entry for more investors, while at the same time prohibiting interference with the existing cap table and structure of the main fund!

The Fund: The exposure to the latest healthcare-focused growth equity fund in KKR's portfolio, with lower investment minimums and greater potential for liquidity.

The Fund's Portfolio: Check it out here.

Investor Requirements: Qualified Purchaser (Minimum $5M net worth).

Minimum Investment: $100K.

Conclusion: KKR is enabling a larger investor pool to obtain access to their PE fund, 2M+ households to be exact will now qualify to invest.

This is incredible to see a very traditional, conservative PE fund deciding to take a leap of faith and go the tokenization route.

If this offering is successful and seamless, there's no reason that more funds won't follow this route and tokenize their respective funds!

All it takes is one to prove the use case and the fact that its KKR - one of the most respected firms around the world, will at the very least get people to take notice.

📑 Security tokens can be profitable & more updates

1. Whoever said that you can't make money in security tokens is sadly mistaken.

In fact, Liti Capital had a successful exit, which provided a 5x return to its investors.

Liti Capital embarked on one of the more unique use cases of security tokens called 'Litigation Financing' where investors provide capital to receive a potential return from a successful lawsuit.

2. INX combined something that has never been accomplished before... ONE platform to trade cryptocurrencies and securities all in one place!

Congratulations to their team for converging the two different asset classes!

3. Ownera raised $20M led by JP Morgan, which is just another validator that the institutions are investing in our space more and more.

JPM joins Ownera’s board and LRC Group’s Chairman becomes its Executive Chairman.

Other participants in the round included Draper Goren Holm, tokentus Investment AG, Accomplice Blockchain, Polymorphic Capital, The Ropart Group, and Archax!

Ownera also partnered with institutional-grade blockchain R3/Corda to increase interoperability from chain to chain eliminating friction for trading.

4. Last but not least, our sister company, Security Token Advisors, released a state-of-the-art real estate tokenization course in partnership with Oasis Pro Markets!

Who is it for? Anyone interested in real estate tokenization, a real estate professional, or anyone looking to get an upgrade and stay ahead of the curve.

Take the course at your own pace and be the smartest one at the table.

Thanks for tuning in! Keep an eye out each Monday for the next security token adventure 🧗‍♀️

Everything in this report is for informational and entertainment purposes only. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this market report should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.

Disclosures:

• No money or other consideration is being solicited, and if sent in response, will not be accepted;

• No offer to buy the securities can be accepted and no part of the purchase price can be received until the offering statement is filed and only through the platform of an intermediary (funding portal or broker-dealer); and

• A person’s indication of interest includes no obligation or commitment of any kind.