$4B Hong Kong Family Office Partners With DeFi Hedge Fund Re7 Capital
In a bold pivot from its traditional private equity roots, VMS Group, a prominent Hong Kong-based family office managing nearly $4 billion in assets, is making its first-ever investment into crypto.
According to a Bloomberg report, VMS has allocated up to $10 million toward digital asset strategies managed by DeFi-focused hedge fund Re7 Capital.
Strategic Shift Toward Liquidity and Innovation
The move reflects a growing trend among institutional players seeking diversification beyond illiquid private investments.
“Private equity is becoming less liquid, with more companies staying private longer,” said VMS partner Elton Cheung. “We’re looking at digital assets to improve portfolio liquidity and tap into new opportunities.”
Historically concentrated in private equity across Asia, VMS is now positioning itself to capitalize on the evolving crypto and decentralized finance (DeFi) markets.
Why Now?
Several factors influenced VMS Group’s timing:
- Improved regulatory clarity across global jurisdictions
- Institutional-grade infrastructure in digital assets
- Increased client interest in blockchain-based strategies
- Hedge fund partners with established track records in DeFi
Re7 Capital, known for its algorithmic and DeFi-native trading models, offers liquid crypto exposure with institutional controls, aligning well with VMS’s risk profile and return objectives.
What This Signals for the Industry
VMS Group’s entry adds to a growing list of traditional asset managers entering the crypto space, highlighting the asset class’s maturation. Other high-profile moves include:
- Metaplanet’s $5B Bitcoin treasury strategy
- ProCap Financial’s $750M SPAC-backed IPO and BTC balance sheet plan
- Texas launching the first publicly funded state Bitcoin reserve
With global family offices holding trillions in assets, their involvement in crypto marks a critical evolution in the market’s capital base.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.