Currently, blockchain investments account for 10-12% of Lennertz’s overall portfolio, reflecting the firm’s strategic commitment to the rapidly evolving blockchain industry.
Lennertz & Co, a German multi-family office, is looking to raise $165 million for its third blockchain-focused fund of funds. This has been revealed in the report by Fortune that cites an interview with the company’s head of fund investments Oksana Tiedt.
The firm has already closed the initial phase of the fundraising, though Tiedt refused to disclose just how much it has raised so far. The German-based firm began exploring investing in the crypto industry in 2016 before officially launching its first fund of $35 million in 2020.
Targeting Blockchain VC Firms
Although Lennertz does not invest directly in cryptocurrencies or related assets, it allocates capital to venture capital firms and financial institutions supporting Web3 companies. Its first fund backed high-profile names like Multicoin, Polychain, and Hack VC.
Following its initial success, Lennertz introduced a second blockchain fund of funds in 2022, securing $65 million. At the time, the company targeted generalist funds implementing crypto strategies such as Bain Capital, Lightspeed, and Andreessen Horowitz.
Building on these previous successes, Lennertz is now seeking fresh capital for its third blockchain fund, aiming to focus on top-tier US venture capital firms while also considering some European investments.
According to Fortune, the $165 million will be invested in between 8 to 10 companies in both regions, with a specific focus on American firms. Tiedt revealed that Lennertz is planning to invest in Polychain and Bain Capital blockchain funds with an expected annual return of over 35%
Expanding Horizons in DeFi and AI
When asked about the motivation behind this new fund, Tiedt explained that the firm’s blockchain investments have consistently outperformed its other asset classes.
“We’re seeing real distributions from these funds, whereby when you have a tight market like now, everybody from private equity to venture is just struggling with lack of distributions. Blockchain is actually sitting quite comfortably,” said Tiedt.
In terms of the market volatility, she disclosed that Lennertz’s strategy of investing in other funds, rather than directly into companies and tokens, has helped it avoid the pitfalls of the market downturn.
However, the company is looking to expand its horizon to explore other opportunities within the decentralized finance (DeFi) ecosystem. Tiedt said that Lennertz is interested in other aspects of the crypto market including cross-chain bridges as well as the artificial intelligence (AI) sector.
Currently, blockchain investments account for 10-12% of Lennertz’s overall portfolio, reflecting the firm’s strategic commitment to the rapidly evolving blockchain industry.
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