C Capital, backed by billionaire Adrian Cheng, plans to raise an investment plan of $500 million in the crypto market and private equity.
The cryptocurrency world has been ruling the world economy in recent years. Many firms and business industries worldwide are astonished by crypto’s capability and future potential. Hong Kong is not behind the crypto race as C Capital, founded by Hong Kong real estate tycoon Adrian Cheng is willing to invest $500 million in blockchain assets, credit, and private equity over the next 18 months, making a bet while crypto companies and digital assets are bottoming out.
A Whopping $500 Million For Crypto Market
C Capital, co-founded by ex-Bank of America Merrill Lynch banker Ben Cheng, is looking to invest a $200 million fund for the crypto industry and plans to invest $300 million in private equity and private credit strategies next year. The report states, “The firm is marketing a $200 million blockchain fund and plans to gather about $300 million to invest in private-equity and private credit strategies next year, people familiar with the matter said, asking not to be identified discussing fundraising details.”
Ben Cheng confirmed that the fresh funds would be added to the $1 billion C Capital has invested in digital assets, private companies, and credits. C Capital’s hedge fund strategy is primarily focused on crypto trading. Elaborating on the goal and strategy made by the firm, Ben Cheng, the Chief Executive Officer and President said, “When people are on defense, we’re on the offense.” He also added that this type of environment historically “will yield the best result. After another 6 to 9 months, it will come back.”
C Capital Makes A Clear Vision For The Crypto Industry
The announcement from Cheng is not a surprise, as he has been quite bullish for the crypto industry in the past. In an interview, Cheng said that he believed in the potential of the crypto-verse, which could soon replace traditional currency and lead the world to better economic infrastructure. Furthermore, C Capital’s new fundraising phase starts in the middle of the crypto winter, which has pushed down crypto coin prices to the lows as Cheng believes that the crypto winter will fade soon and the crypto prices will start an uptrend soon.
Cheng said that the return on investment of the firm saw a rise of 40% in the first half of 2022 after doubling its 2021 returns. He added that investment in credit and private equity acquires about 40% of the firm’s capital, while nearly 20% is dedicated to the hedge fund assets. Regarding the crypto fund, C Capital will invest in a wide range of digital assets, including leading crypto coins of the market and non-fungible tokens (NFTs). In addition, the firm will also invest in the companies associated with the blockchain industry and its applications.
The firm’s investment plans on the cryptocurrency market look promising, and it is expected that it will soon have an impact on the crypto prices to make a comeback. C Capital is not the only player in the market to raise an investment plan in the crypto market, as hedge fund manager Alan Howard raised $600 million to initiate a new crypto fund. Digital asset management firm Galaxy Digital also plans for an investment of $500 million to launch a crypto fund. As more and more firms join the crypto race, it seems clear that the mainstream crypto industry adoption will increase in the upcoming months.