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Dry Powder: The Private Equity Podcast

Inside the Race to Tokenize Capital with HgCapital Trust’s Jim Strang

We consider whether the launch of a few tokenized funds amounts to an interesting experiment on the blockchain or the beginning of a powerful secular trend.


Inside the Race to Tokenize Capital with HgCapital Trust’s Jim Strang

We’ve seen a few private equity firms launch tokenized funds over the past year or so, and we’ve heard a growing number of clients discuss whether they need to get ahead of this trend.

You can listen to this episode of Dry Powder and catch future episodes by subscribing on Apple PodcastsGoogle PodcastsSpotify, or wherever you may listen.

“You’re being asked to go on leaps and bounds in something where you haven’t gone on any leaps ever,” says Jim Strang, the chairman of HgCapital Trust.

Today on Dry Powder, we consider just how quickly tokenized funds can drive down ticket sizes and enable a whole new class of investors to access private equity funds.

“The bite size in an LP fund is millions of dollars, which obviously eliminates nearly all of the individual customers,” Jim says. “If you can get that ticket bite size down far enough, then you just explode out a pyramid of potential customers.”

We also consider what it will take for private equity firms to stay at the forefront of this rapidly emerging trend.

“My sense would be it’s just too important to ignore,” Jim says. “What your version of it is and what pace you go at and how you choose to implement the technology that comes alongside it [is] very much an individual choice, but you should know what your choice is.”

If you haven’t heard our interviews with other early movers in this space, including the CEOs of Titanbay, Moonfare, and Opto Investments, I highly recommend you go back and listen to those episodes as well.


The Private Equity Podcast

In our podcast series, Bain's Hugh MacArthur interviews leading experts on the trends and opportunities that will redefine the private equity industry.


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