Morgan Creek Digital, a hedge fund backed by corporate powerhouse Morgan Creek Capital, has successfully raised more than $40 million for a venture capital fund that invests across the blockchain and digital assets industry. The new fund is called the Morgan Creek Blockchain Opportunities Fund and is reportedly focussed on investing in the digital asset industry.
Two pension plans in Fairfax County, The Fairfax County Police and Fairfax County Employee’s Pension, are the anchor investors in the new $40 million venture-capital fund. Other investors include an insurance company, a university endowment and a private foundation.
Morgan Creek Digital founder Anthony Pompliano said his firm initially wanted to raise $25 million, but increased the round due to its popularity. He told Bloomberg: “There’s a belief in the institutional world that if the industry will be around for a long time, it will be very valuable. The smart money is not distracted by price but looks at the long-term trends, and believes they’re betting on innovation as a great way to deliver risk-mitigated returns”.
“The Institutions Are Already Here”
Some of the $40 million has been already been invested in startups such as Bakkt, the cryptocurrency exchange co-owned by Starbucks and the Intercontinental Exchange, which runs the New York Stock Exchange.
“Blockchain technology is being applied in unique and compelling ways across multiple industries,” said Katherine Molnar, Chief Investment Officer of Fairfax County’s police officer’s retirement system, in a statement. “We feel it is important to be opportunistic and are excited to participate in this emerging opportunity”.
The most recent County of Fairfax annual report shows that of the $1.5 billion invested in pension trust funds, $1.2 billion went to the police and employee funds, with the remainder going to a more general uniformed retirement fund.
Pompliano posted a tweet revealing his confidence in the fund: “The institutions aren’t coming. They’re already here”.