Multi-strategy crypto investment firm Parataxis Capital expects to triple assets under management for its $35.6 million digital yield fund by the end of the year, with another ambitious target of $500 million by the end 2023, co-founder and CEO Edward Chin told CoinDesk in an interview. Chin said the target is based on discussions with the company’s allocators, who help institutions decide where to invest money.
Parataxis, which currently has approximately $116 million in assets under management, is primarily focused on institutional investors such as banks, family offices and pension funds. Market-neutral Parataxis Digital Yield Fund made headlines in August when $6.8 billion Fairfax County Retirement Systems of Fairfax County, Virginia, announced it would invest $35 million in the Yield Farming Fund. Fairfax, one of the first US retirees to invest in crypto, made a two-part bet on yield farming, a term that refers to any effort to generate the highest possible returns from crypto assets through a variety of methods.
Read more: What is Yield Farming? DeFi’s rocket fuel, explained
Parataxis also manages the Multi-Strategy Absolute Return Fund, which adapts its strategy to the current market cycle. At the time of the last filing in April, the fund had assets of $69.5 million. And the $9.6 million Special Opportunities Fund focuses on what the company calls liquid venture capital, making seed-stage investments in “promising protocols and token-based technologies,” Chin said.
Parataxis was founded three years ago by Chin and Thejas Nalval, who serve as the firm’s Chief Investment Officer. According to Chin, who served in the US Army, Parataxis stands out in the crypto investment space as a small business owned by disabled veterans. He previously worked as an investment banker at digital asset banks Galaxy Digital and Element Group and spent years in traditional finance, including at Credit Suisse. Nalval was previously a portfolio manager at crypto hedge fund LedgerPrime and met Chin at Element Group. He was at Goldman Sachs for eight years, most recently as a trader in the macro trading group.
“We have a good sense of how [institutional] Allocators look at the room,” Chin explained. “We try to understand what’s important to our potential limited partners and try to create products and investment strategies that appeal to them, rather than create something and hope the market gets there.”
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