Parafi Capital, a New York-based digital asset manager, has raised $120 million to invest in or acquire general partner (GP) stakes in crypto funds that focus on specific market segments, strategies, or geographies. Founder Ben Forman said the firm plans to build a portfolio of 30-50 GP stakes.
GP Stakes: A Growing Asset Class in Crypto
According to Bloomberg, investors in the round include Theta Capital Management and Accolade Partners. “GP stakes are a growing asset class in traditional finance but haven’t existed at scale in crypto. We think they will,” Forman stated. “We’ve watched the crypto-fund landscape evolve closely. We believe there will be many more crypto funds as institutional capital enters this space.”
GP stakes align the interests of general partners with limited partners and often come with performance-based features like carried interest, making them popular among venture capital firms.
From Internal Reserves to External Capital
Before this raise, Parafi Capital—backed by KKR co-founder Henry Kravis—had invested in nine asset managers using internal reserves. With the new funding, the firm expects to significantly expand its portfolio of asset managers.
Forman emphasized that specialization and focus are key, whether across geography, theme, or investment type. The GP stake model allows Parafi to share in performance fees while diversifying risk across multiple fund management companies.
Market analysts note that this fundraising signals growing institutional interest in the management equity of crypto asset managers. With the launch of Bitcoin ETFs and other products, traditional financial players are seeking indirect exposure to crypto—GP stakes provide that gateway.
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