VMS Group, a Hong Kong multifamily places of work with deep roots in personal fairness, is making its first push into digital property as clearer rules and institutional momentum pull conventional buyers into the crypto house.
Bloomberg reported Tuesday that the agency, which manages almost $4b for among the metropolis’s wealthiest households, plans to allocate as much as $10m to Re7 Capital, a London-based hedge fund targeted on decentralized finance methods.
VMS managing associate Elton Cheung mentioned the transfer displays a shift in how the agency approaches liquidity and diversification.
Based 20 years in the past, the Hong Kong agency has traditionally targeted on personal fairness and long-term bets throughout sectors resembling property, prescribed drugs and expertise.
However with corporations staying personal longer and exits turning into more durable to time, the agency is now leaning into extra liquid methods, together with digital property.
VMS Chooses Hedged Method to Crypto Over Direct Token Holdings
“We thought this was the correct time due to rising demand and since we see clearer legislative and authorities help from numerous jurisdictions, in addition to giant institutional help and endorsement,” Cheung instructed Bloomberg. He didn’t disclose particular purchasers.
As an alternative of shopping for risky tokens like Bitcoin, VMS selected to work with Re7, which presents a market-neutral technique.
The fund earns yield by offering liquidity on decentralized exchanges and lending stablecoins, whereas hedging to cut back value swings. That method aligns extra carefully with the danger frameworks of legacy household places of work which might be searching for publicity with out speculative draw back.
“The explanation buyers maintain coming again to crypto is the asymmetry of danger and return,” mentioned Re7 founder Evgeny Gokhberg. “Usually, individuals take into consideration asymmetry in crypto as ‘lose all of it or make a 100x.’ That’s hardly ever a match for a critical allocator with a popularity to lose.”
Re7, based in 2021, claims to have constantly delivered double-digit returns, although it didn’t disclose precise figures.
Subsequent-Gen Wealth Influences Hong Kong Household Workplace’s Shift Towards Broader Digital Asset Adoption
VMS’ crypto technique goes past hedge fund publicity. Zhi Li, who joined the agency in December to steer digital asset investments from London, mentioned the workforce is finding out broader functions, together with blockchain funds and infrastructure.
One present space of curiosity is integrating crypto-based transactions at an actual property improvement the agency operates in Vietnam.
“There may be very sturdy institutional and household curiosity in getting regulated digital asset publicity,” mentioned Li. “We’ve got seen the youthful era of households eager to do one thing totally different.”
As household places of work evolve to serve new wealth dynamics and generational preferences, VMS’s entry into crypto displays a broader shift. As soon as reluctant, legacy capital is now entering into digital property, not for hype, however for construction, yield and strategic positioning.
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