Singapore’s asset manager Whampoa Group plans to set up a venture capital fund and a crypto hedge fund for investments in digital assets.
Upon early estimations, the company intends to allocate $100 million.
$100 Million Venture Capital Fund
The group has earmarked $100 million for the venture fund while it plans to raise $50 million for the crypto hedge fund. It has set up a new entity called Whampoa Digital, which aims to attract third-party capital to invest in the digital assets market.
Whampoa Group’s multi-pronged investment strategy includes a $100 million private market asset fund and a $50 million public market hedge fund, media reports said.
The private venture capital fund, which is likely to be launched in the next quarter, will invest in early-stage start-ups in Web 3. Subsequently, Whampoa Digital will increase the fund’s size to scale up investments.
“We think there is great conviction in this space. The venture capital fund will help us to expand our footprint in this area,” Shawn Chan, CEO of Whampoa Group, told Reuters.
He further added that the proposed crypto venture fund has received encouraging responses from Asian tech firms and business groups. High internet penetration and demographics promise mass adoption of Web3 products and services in Southeast Asia, Shan elaborated.
Whampoa Group is a multi-family investment firm co-founded by Amy Lee and Lee Han Shih. Both belong to the extended family of Lee Kuan Yew, who served as the first Prime Minister of the city-state and remained in power from 1959 to 1990.
The group had participated in a $500 million fund announced by Binance Labs in June this year to drive the adoption of Web3 and blockchain tech. Its investment portfolio includes about 200 companies.
Besides use in remittances and the entertainment industry, Web 3 start-ups in Defi have long-term growth potential, said Aureole Foong, a senior partner at Whampoa Group.
More Funds Setting Eyes on Digital Assets
In August, UK-based asset management company Brevan Howard announced a $1-billion crypto hedge fund. In a recent filing with the United States SEC, the company provided details about the $210 million it raised through two sub-entities.
A PricewaterhouseCooper (PwC) study in June said that traditional hedge funds seem to be undeterred by a crypto market crash as they continue to invest in such products and assets. The PwC’s 4th Annual Global Crypto Fund report revealed that 38% of traditional hedge funds were already investing in digital assets, a 17% jump over the previous year.
Also, two-thirds of crypto investors who were part of the survey were planning to increase their investments by the end of 2022.