ParaFi Capital defies market slump with $125M new fund raise

• ParaFi secures $125 million for a new venture fund despite a broader cryptocurrency market downturn.
• The firm has raised a total of $325 million for its various crypto investment strategies since the beginning of 2025.
• Total assets under management for the New York-based firm have reached approximately $2 billion.

Expansion of Capital and Management

ParaFi, a digital asset management firm based in New York and supported by KKR co-founder Henry Kravis, has successfully closed a $125 million funding round for its latest venture vehicle. This new capital infusion follows an active period for the firm, which reported raising $325 million for its existing investment strategies since the start of 2025.

With these latest additions, ParaFi now oversees roughly $2 billion in assets. The firm was established by Ben Forman, who departed from KKR in 2018 to specialize in the nascent digital asset space.

Strategic Investment Focus

According to Ben Forman, the newly established fund will target startups developing critical financial infrastructure. The primary areas of interest include:

• Stablecoins and their integration into global finance.
• Tokenization of real-world and financial assets.
• On-chain financial products tailored for large-scale institutional use.

ParaFi has a history of backing influential projects in the ecosystem. Its previous portfolio includes the prediction platform Polymarket, the crypto asset manager Bitwise, the decentralized finance protocol Kyber Network, and the institutional custodian Anchorage.

Resilience Amid Market Volatility

This capital raise is particularly noteworthy given the current state of the crypto markets. Bitcoin has experienced a decline of more than 26% since reaching a peak in January 2026, only recently regaining the $70,000 price level. Similarly, the CoinDesk 20 (CD20) index, which tracks the broader market, saw a value reduction of one-third during that same timeframe.

Forman noted that sophisticated investors are beginning to look past short-term price fluctuations. He emphasized that there is a growing distinction being made between volatile token prices and the long-term potential of blockchain-based financial infrastructure.