Of course, Kravis is not the first billionaire to make this move. Investors such as Alan Howard, Peter Thiel and Louis Bacon have already placed some trust in blockchain technology and the cryptocurrencies that stem from it.
Former employee and ParaFi Capital Founder, Ben Forman, understands the increasing interest in cryptocurrency investments. He sees exceptional upsides for investors due to the inherent volatility and risk.
“In the high-yield markets, I used to fight to outperform the index by tens of basis points. Crypto, on the other hand, due to its nascency, offers a tremendous amount of alpha to active managers.’’
In 2018 Forman abandoned KKR & Co. and concentrated solely on cryptocurrency and blockchain. He commented on his shift in interest:
“While I toyed with the idea of pursuing blockchain investing within KKR, it was clear to me that the firm did not provide the optimal format to do so. Instead of pursuing crypto at KKR, I wanted to build the KKR of crypto.”
At the moment ParaFi Capital’s portfolio involves MakerDAO, an Ethereum-based stablecoin project, the top U.S. crypto exchange Coinbase, and Grab, an app that provides financial and logistic services.