ParaFi, a New York-based digital asset manager backed by KKR co-founder Henry Kravis, raised $125 million for a new venture fund, Bloomberg reported.
The cash comes on top of the $325 million that ParaFi said it has raised for existing crypto investment strategies since the start of 2025. The firm now manages about $2 billion.
Founder Ben Forman, who left KKR in 2018, said the new vehicle will focus on startups working on stablecoins, tokenization and onchain financial products for large institutions.
Since its inception, ParaFi has backed companies including prediction market Polymarket, crypto asset manager Bitwise, decentralized finance firm Kyber Network and custodian bank Anchorage.
The fundraise stands out as it comes during a weak stretch for the crypto sector. Bitcoin is down more than 26% from the 2026 high it hit in January and has only recently regained the $70,000 mark. The broader market, as measured by the CoinDesk 20 (CD20) index, lost a third of its value over the same period.
Investors are beginning to separate short-term token price fluctuations from the long-term case for blockchain-based financial infrastructure, Forman said, according to Bloomberg.
