Lennertz & Co Seeks $165M for Third Blockchain Fund Targeting US VCs

Lennertz & Co, a German multi-family office, is looking to raise $165 million for its third blockchain-focused fund of funds.

German multi-family office Lennertz & Co is raising $165 million for its third blockchain-focused fund of funds, according to a report by Fortune, citing an interview with the company’s head of fund investments Oksana Tiedt.

The firm has already closed the initial phase of the fundraising, although Tiedt declined to disclose the amount raised so far.

Lennertz began exploring investment in the crypto industry in 2016, before launching its first fund of $35 million in 2020.

While Lennertz does not directly invest in cryptocurrencies or related assets, it allocates capital to venture capital firms and financial institutions supporting Web3 companies. Its first fund backed high-profile names like Multicoin, Polychain, and Hack VC.

Following its initial success, Lennertz launched a second blockchain fund of funds in 2022, securing $65 million. At the time, the company targeted generalist funds implementing crypto strategies such as Bain Capital, Lightspeed, and Andreessen Horowitz.

Building on these previous successes, Lennertz is now seeking fresh capital for its third blockchain fund, aiming to focus on top-tier US venture capital firms while also considering some European investments.

According to Fortune, the $165 million will be invested in around eight to 10 companies in both regions, with a specific focus on American firms.

Highlighting some specific investment plans, Tiedt told the publication that Lennertz is set to invest in Polychain and Bain Capital blockchain funds, both of which are expected to generate annual returns of over 35%.

Expanding Horizons in DeFi and AI

When asked about the motivation behind this new fund, Tiedt explained that the firm’s blockchain investments have consistently outperformed its other asset classes.

“We’re seeing real distributions from these funds, whereby when you have a tight market like now, everybody from private equity to venture is just struggling with lack of distributions. Blockchain is actually sitting quite comfortably,” said Tiedt.

In terms of the market volatility, she disclosed that Lennertz’s strategy of investing in other funds, rather than directly into companies and tokens, has helped it avoid the pitfalls of the market downturn.

However, the company is looking to expand its horizon to explore other opportunities within the decentralized finance (DeFi) ecosystem.

According to Tiedt, Lennertz is interested in other aspects of the crypto market including cross-chain bridges as well as the artificial intelligence (AI) sector.

Currently, blockchain investments account for 10-12% of Lennertz’s overall portfolio, reflecting the firm’s strategic commitment to the rapidly evolving blockchain industry.