VMS Group, a Hong Kong multifamily workplaces with deep roots in personal fairness, is making its first push into digital belongings as clearer laws and institutional momentum pull conventional traders into the crypto area.
Bloomberg reported Tuesday that the agency, which manages almost $4b for a number of the metropolis’s wealthiest households, plans to allocate as much as $10m to Re7 Capital, a London-based hedge fund centered on decentralized finance methods.
VMS managing associate Elton Cheung stated 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 centered on personal fairness and long-term bets throughout sectors comparable to property, prescribed drugs and expertise.
However with corporations staying personal longer and exits changing into tougher to time, the agency is now leaning into extra liquid methods, together with digital belongings.
VMS Chooses Hedged Method to Crypto Over Direct Token Holdings
“We thought this was the proper time due to rising demand and since we see clearer legislative and authorities help from numerous jurisdictions, in addition to massive institutional help and endorsement,” Cheung advised Bloomberg. He didn’t disclose particular purchasers.
As a substitute 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 worth swings. That method aligns extra carefully with the danger frameworks of legacy household workplaces which are looking for publicity with out speculative draw back.
“The rationale traders preserve coming again to crypto is the asymmetry of threat and return,” stated Re7 founder Evgeny Gokhberg. “Sometimes, folks take into consideration asymmetry in crypto as ‘lose all of it or make a 100x.’ That’s not often a match for a severe allocator with a popularity to lose.”
Re7, based in 2021, claims to have persistently 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, stated the staff 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,” stated Li. “We now have seen the youthful technology of households eager to do one thing totally different.”
As household workplaces 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 belongings, not for hype, however for construction, yield and strategic positioning.
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