Henry Kravis invests in crypto-oriented fund launched by former employee

KKR & Co co-founder Henry Kravis has invested in a crypto fund ParaFi Capital, Bloomberg writes. The company was set up by KKR & Co’s former employee Ben Forman last year, following his departure from KKR. Besides the investment from Kravis, ParaFi received funding from Bain Capital Ventures and Dragonfly Capital Partners.

At KKR, Forman worked in the credit business and was the head of in-house research on blockchain and cryptocurrency. While he considered “pursuing blockchain investing within KKR,” but ultimately decided to “build the KKR of crypto” of his own. 

“In the high-yield markets, I used to fight to outperform the index by tens of basis points,’’ Forman said. “Crypto, on the other hand, due to its nascency, offers a tremendous amount of alpha to active managers.’’ 

ParaFi manages $25 million, with plans to reach $100 million by the first quarter of 2020, Forman said.