Boutique Dutch fund management house Finles Capital is looking to raise EUR100 million through an Initial Coin Offering for its next private equity fund, which will invest in blockchain startups as well as in more stable equity assets.
Finles is using its own cryptocurrency, called FundCoin, for the ICO, which it will invest in its Lowestoft Private Equity fund. The fund is targeting a speculative Internal Rate of Return of 25%, driven mainly by anticipated growth in the blockchain industry.
Finles claims to have received enthusiastic backing for the ICO from investment groups in New York, Singapore, Moscow, Bratislava, London and Newark.
Larry Jones of Michaelson Capital Partners in New York believes the structure of the fund offers investors a safer harbour in an unpredictable market. “The cryptocurrency market is seen as an exciting one, but the extreme volatility means that it’s one for experienced and educated investors," he says. "By investing in the blockchain market in combination with traditional private equity, investors have the best of both worlds."
The booming ICO market is drawing the attention of regulatory bodies across the globe, with the FCA yesterday warning consumers of the high risks involved and the SEC hinting at future oversight restrictions. China authorities, meanwhile, have banned the practice all together. But the bubble continues to grow, with the Finextra mailbox receiving four separate announcements about forthcoming ICOs just this morning as new figures from TechCrunch reveal that ICO funding hit a record of $800 million in Q2 2017.