Nasdaq-listed Overstock (NASDAQ: OSTK) announced Monday it has closed its transaction with venture capital firm Pelion Venture Partners to manage blockchain-focused Medici Ventures.
- In its announcement, Overstock said its blockchain-focused subsidiary, Medici Ventures, has now been converted into a limited partnership and will be managed by Pelion.
- As reported by CoinDesk in January, Overstock said the business would be converted into a limited partnership under new management as part of Overstock’s plan to eventually exit its blockchain-related investments.
- Pelion is now fully responsible for the fund’s investment decisions and will act as the general partner of the fund, and Overstock will be the sole limited partner. Overstock has committed $45 million over the eight-year life of the fund.
- According to the partnership agreement terms, the fund will return invested capital to Overstock first and then split profits on successful exits.
- Overstock will retain a direct minority equity interest in the blockchain technology firm tZERO Group, while the fund will hold a minority stake.