Apollo Global Management Inc. is going to offer a new fund on a public blockchain as it expands its relationship with financial technology firm Figure.
Apollo and Hamilton Lane Inc. are launching investment vehicles using a platform on Figure. The groups are utilizing a blockchain technology known as
The offering will be tied to Apollo's digital asset strategy, Figure Chief Executive Officer Mike Cagney said. Hamilton Lane is
"It's the beginning of what we think will be a systemic trend of funds migrating onto the blockchain," Cagney said in a telephone interview. "It's not crypto. It's using blockchain as it was intended as a way to disintermediate marketplaces."
Apollo's foray into digital assets includes working with Figure for purposes such as the
Apollo and Hamilton Lane join a number of firms using blockchain to scale work with investors. KKR & Co., another rival in private assets, said earlier this year it would be
Cagney explained that blockchain is helping the funds reduce costs tied to record-keeping of fund investors, while providing easier ways to issue capital calls and give money back to backers. He also said it enables the use of stablecoins to facilitate fund subscriptions and distributions.
"This is using blockchain to reduce costs, improve efficiencies, and ultimately drive revenue," Cagney said. "It increases the breadth and reach of the fund."