Valentus Capital, a private equity investment firm based in the U.S., is planning to raise $50 million for its first fund via a token sale.
The token offering is expected to occur later this year or early next year, Reuters reported Wednesday. The token, VAL1, would allow investors to buy a stake in Valentus Credit Opportunities Fund I.
The fund would target a total raise of $250 million and tokenize only a part of it. Valentus is partnering with blockchain startup Realio for the token offering. Realio has reportedly tokenized more than $300 million worth of assets.
The minimum investment in the Valentus fund would be $10,000 instead of millions of dollars that traditional private equity transactions require. Tokenization helps target even small retail investors as tokens represent fractions of ownership.
Valentus was launched in March and aims to register as a private equity firm with the U.S. Securities and Exchange Commission. The firm would invest in assets such as mortgage securities and distressed debt via its funds.