Two public pension funds have invested US$ 50 million in Morgan Creek Digital’s second blockchain fund. The investment was made by the Fairfax County Police Officer’s Retirement System in Virginia, United States, and by the Employees Retirement System of the same county.
The investment shows how the institutional capital is becoming friendly with the decentralized digital assets market. Especially at a time of negative interest rates in some countries and an impending global recession, if there is a further burst of the asset bubble.
With this, Morgan Creek has raised US$ 60.9 million from the US$ 250 million that it intends to raise for the project. The remaining US$10 million came from other institutional investors, including Wakemed Health and Hospitals, an insurance company and a university endowment.
Morgan Creek revealed to CoinDesk that the institutions had already invested in the company’s first fund in February this year. At the time, the contribution was US$ 21 million, less than half of the current value.
Other investors interested in the blockchain fund
In an interview to CoinDesk, Morgan Creek Capital partner,Anthony Pompliano, said there is no forecast to complete the total revenue expected by the company. “We have heard people saying institutions aren’t interested. However, this initial closure of the transaction, along with the conversations we are having with dozens of other institutions show that there is no lack of interest”.
“We have heard people saying institutions aren’t interested. However, this initial closure of the transaction, along with the conversations we are having with dozens of other institutions show that there is no lack of interest”.
Morgan Creek’s second fund will focus primarily on equity seed investments. As well as the first one, the project includes capital inputs from blockchain infrastructure companies such as Bitwise and BlockFi.
For its first fund, Morgan Creek raised US$ 40 million, which exceeded the investors’expectations. As a result, the company ended up exceeding the initial fundraising target, which was US$ 25 million. “We raised the first fund for specific investments” Pompliano said.
He points out, however, that the second fund has a more institutional dimension. “For investors who are with us, that is a size which they are used to”.