Meanwhile Group, backed by Sam Altman, seeks sophisticated investors for innovative bitcoin credit fund with a 5% yield target.
Amidst the fluctuating landscape of cryptocurrency, Meanwhile Group, a crypto startup backed by influential figures such as Sam Altman, is making waves with its ambitious plan to raise $100 million for a bitcoin private credit fund. This fund, known as the Meanwhile BTC Private Credit Fund LP, is designed to provide institutional investors with a novel way to access bitcoin and potentially earn a 5% yield denominated in the cryptocurrency itself.
The Meanwhile BTC Private Credit Fund LP is structured as a single-close, closed-end fund, meaning that there will be a one-time opportunity for investors to participate, after which the fund will not accept additional capital. With a minimum investment threshold set at $250,000 per limited partner (LP), the fund is targeting a sophisticated investor base. The fund's term is seven years, divided into a three-year investment period and a subsequent four-year harvest period, where the returns will be realized and distributed.
Investors in the Meanwhile BTC Private Credit Fund LP will be subject to a 2% management fee and a 20% carried interest fee, both of which will be charged in bitcoin. This fee structure is particularly unique as it aligns the fund's success with the appreciation of bitcoin, rather than fiat currency. To manage risks, the fund will focus on lending to institutional borrowers, who are deemed to have higher creditworthiness and safety. Moreover, Anchorage Digital has been appointed as the custodian for the fund, ensuring a secure storage solution for the digital assets.
In addition to the private credit fund, Meanwhile Group's insurance unit has launched a bitcoin-denominated life insurance policy and is planning to introduce accidental death coverage in bitcoin. These products represent a pioneering step in integrating cryptocurrency into traditional financial services and offer investors additional avenues to manage their digital asset portfolios.
The launch of the Meanwhile BTC Private Credit Fund LP coincides with a period of renewed interest in cryptocurrencies, as evidenced by the crypto market rally and the growing anticipation for a U.S. spot Bitcoin ETF. For investors, this fund presents an opportunity to enhance their bitcoin holdings through a yield-generating mechanism without the need to contribute additional principal. The fund's strategy involves converting investors' U.S. dollars into bitcoin and lending them out to generate a return, which could be particularly appealing during times when traditional investment yields are low.
For those looking to diversify their investment portfolio and potentially capitalize on the growth of bitcoin, the Meanwhile BTC Private Credit Fund LP offers a unique proposition. It combines the potential for a bitcoin-denominated yield with the security of institutional lending and the oversight of a reputable custodian. However, as with any investment, especially in the volatile crypto market, potential investors should carefully consider their risk tolerance and perform due diligence before committing capital.
