The founder of 10T established an encrypted PE organization "1RoundTable", intending to raise US$1 billion for its new fund
This article comes fromBlockworks, Original Author: MICHAEL BODLEY
Odaily Translator | Nian Yin Si Tang
Odaily Translator | Nian Yin Si Tang
10T Holdings founder Dan Tapiero launches a crypto private equity (PE) fund at a deeply discounted valuation, aiming to raise $1 billion with the backing of hedge fund billionaire Alan Howard and other high-profile investors .
Tapiero is leading the formation of the growth-focused private equity startup, described as a "natural evolution of the investment strategy created by 10T Holdings," according to the company's marketing materials.
The 10T founder is currently the CEO, Chief Investment Officer and Managing Partner of 1RoundTable Partners. His goal is to raise a whopping $1 billion by the end of the third quarter, when 1RoundTable's flagship fund, 1RT Opportunities Fund, plans to close its fundraising.
10T's investment activities will remain unaffected and some employees of its managing partner will be transferred to the new joint venture. Professionals, including Tapiero, will continue in their current positions at 10T.
secondary title
“There is no single token exposure”
Tapiero confirmed this in an exclusive interview with Blockworks.
Tapiero has a long Wall Street career, including a stint at Tiger Management. He said 1RoundTable is "committed to helping the cryptocurrency space" shed the "stigma" that still exists in the industry. This stigma is exacerbated by U.S. regulators and institutional investors who don’t understand digital assets, and who haven’t done their homework on digital assets, Tapiero said.
“Key to our strategy is to allow people to gain exposure to the digital asset ecosystem without all the wild volatility and without all the single-token exposure,” he said.
Last year, Tapiero said, he and his 10T team walked away from more than 100 deals, “many of them because of high valuations.” Tapiero ultimately sanctioned 10T’s investment campaign, which he now sees as more attractive.
What is the impetus behind 1RoundTable? In response, Tapiero said there was an opportunity to double down on 10T’s winning venture capital bets with accelerated capital, an investment style that appeals to both crypto-native and traditional financial investors.
"I've always hoped - with 10T and 1RoundTable - that we could act as a bridge between the old world and the new."
According to marketing materials, the fund’s focus is on backing equity stakes in mid-to-late-stage digital asset companies that “have the potential for substantial appreciation over the next 5-10 years.” Two sources familiar with the matter confirmed the circumstances surrounding the founding of 1RoundTable.
Its strategy is to leverage the deep relationships that form the team. 1RoundTable’s marketing materials mention the company’s “deep … knowledge and connections” in digital assets. More specifically, the private equity fund hopes to take advantage of "the best entry point right now" to acquire "discounted" stakes in digital assets.
Tapiero and his new team are ramping up their marketing efforts, which will begin in earnest next week. He declined to comment on 1RoundTable's financing details and related terms, citing private placement regulations.
secondary title
big name team
He has the backing of some of the biggest names in digital assets and on Wall Street, including hedge fund billionaire Alan Howard, who will take an undisclosed amount in the general partner. Howard also previously landed a general partner role at 10T, a source said.
His stakes in both companies are relatively small compared to Howard's portfolio, one source said. Tapiero has invited 10T partners Michael Dubilier and Eric Vincent to join 1RoundTable's new team. Joining 1Rountable in May is Joe Majocha, who previously served as chief financial officer at Two Sigma, a $4 billion private equity firm, according to the filing.
Former Sotheby's (Sotheby's) CEO Tad Smith has also been hired as an advisory partner, perhaps an indicator of lingering institutional NFT interest in digital collectibles amid last year's tumultuous fourth quarter.
1RoundTable’s flagship fund — which charges high fees by current crypto industry standards — has a five-year investment horizon. It has a fund term of 10 years, renewable for two years. 1RT Opportunities Fund charges a fee of 2% to 20%.
According to marketing materials, the fund’s service providers are now in place: Standish Management has been appointed as the fund’s administrator; JPMorgan as its banking partner; KPMG as its auditor; and Optima Partners for compliance. Two other law firms are also in place.
Tapiero's new startup plans to have 10 to 15 employees, including investing and non-investing professionals. He takes a long-term view when it comes to the role of private equity in the digital asset space. In terms of institutional capital, though, that sentiment has yet to gain much traction.
