Morgan Creek Digital says it has secured what is probably the first investment in the crypto asset universe from a U.S. pension fund. The asset management firm founded by Mark Yusko, Jason Williams and Anthony Pompliano, announced today that it successfully raised more than $40 million for a venture capital fund that invests in digital assets.
Two pension plans in Fairfax County, Virginia are anchor investors in the new venture-capital fund, according to a statement from the company. Other investors include an insurance company, a university endowment and a private foundation, said Morgan Creek Digital founder Anthony Pompliano, who declined to provide further details.
Katherine Molnar, Chief Investment Officer of Fairfax County Police Officer’s Retirement System, said that it is important “to be opportunistic and [is] excited to participate in [the blockchain industry] due to the attractive asymmetric return profile that it represents.”
The two pension funds that invested in Morgan Creek’s fund have more than $5 billion in assets under management, which means that an investment in Morgan Creek’s new fund will represent a very small position for them.
Jason Williams said:
“many of the largest, most valuable companies of tomorrow will be built using [blockchain] technology.”
Pompliano said his new fund is structured like a traditional venture capital fund that will invest in the equity of companies in the blockchain and digital assets industry. The fund will also hold a small percentage of its value in liquid cryptocurrencies, such as Bitcoin, said Pompliano.
Morgan Creek Digital, exceeded its original target of $25 million for the fund. One of the mantras of the fund is that all traditional assets will eventually be represented by digital tokens, while the influx of intellectual capital into digital assets will create positive returns.
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