An investment adviser for institutional clients – Morgan Creek – announced on February 12 that its new $40 million blockchain fund received investments from two US public pension funds.
The fund was originally planned to raise $25 million, but with the investor's interest, the figure almost doubled reaching $40 million. According to the sources in the know, the fund was backed by university endowment, a hospital system, an insurance company and a private foundation along with the state pension funds.
As Morgan Greek's partner noted there is no example when investments came from public pension funds.
Fairfax County Police Officer’s Retirement Systems CFO Catherine Molnar believes that the blockchain technology opens an opportunity for unique and efficient applications in different segments and it is rather crucial to stay enterprising, so the opportunity offered is worth taking.
According to the available data, the two abovementioned entities have assets of $1.45 billion and $4.25 billion respectively. Although both funds are located in one region, they have own assets and investment councils.
The new Morgan Creek fund will be primarily focused on purchasing stakes in startups at the initial fundraising stage. It may invest in projects with its own tokens that do not sell stakes but have a cash flow and comply with Regulation D of the Securities Exchange Commission (SEC). In addition, the company will hold small volumes of major cryptos.
Morgan Creek already has the experience of cooperation with blockchain companies via investments in such companies as Bakkt, Blockfi, Coinbase, RealBlocks, Harbor, Open Finance Network, CityBlock Capital, Namebase, Good Money, and Digital Assets Data.