ParaFi Raises Additional $200M for Its Flagship Digital Opportunities Fund

The fund has raised over $216 million from 226 investors since opening for investments.

Dec 8, 2021 at 3:57 p.m. UTC
Updated Dec 9, 2021 at 8:27 p.m. UTC

The flagship hedge fund of ParaFi Capital, a firm focusing on blockchain and decentralized finance (DeFi), has added more than $200 million in investments since April 2020, the Greenwich, Connecticut-based company said in a regulatory filing. The update comes two months after private equity giant KKR & Co. made its first blockchain investment with an unspecified stake into the fund.

The ParaFi Digital Opportunities Fund has raised over $216 million from 226 investors since opening for investments in 2018. That’s up from the more than $11 million and 62 investors it reported last year.

ParaFi also filed a new notice for the ParaFi Digital Opportunities International fund, which started accepting investments in May and has raised $232 million from 66 investors.

Crypto funds have boomed this year as digital asset prices rallied. Crypto-related companies raised more than $9.9 billion in the first half alone, more than quadruple the first-half 2020 level, according to Dove Metrics data.

ParaFi was founded in 2018 by KKR alum Ben Forman and has around $1 billion in assets under management. Its investments include trading platform Gemini, decentralized autonomous organization (DAO) marketplace Talis and Ethereum infrastructure company ConsenSys.

Last week, filings revealed that ParaFi had raised $30 million in a new private opportunities fund and filed for a new growth fund.

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Brandy covers crypto-related venture capital deals for CoinDesk.