Market News

Crypto Growth: Arthur Hayes' Maelstrom Targets $250M for Private Equity Fund, Reports Bloomberg

Arthur Hayes' family office, Maelstrom, is currently seeking to raise $250 million for its inaugural private equity fund aimed at mid-sized crypto firms.

According to a Bloomberg report, the fund plans to allocate between $40 million and $75 million per investment, targeting up to six companies that focus on trading infrastructure and analytics.

Unlike traditional token-based investments, Maelstrom aims for non-token equity deals where valuations are grounded in cash flows rather than speculative assessments.

Co-founder and managing partner Akshat Vaidya remarked that these business valuations are more stable and avoid artificial inflation linked to unused tokens.

The fund will be registered in the U.S., with plans to structure acquisitions through special-purpose vehicles, combining its capital with that of co-investors.

Vaidya is looking to achieve a first close by March 31, 2024, with intentions to complete funding by September 2026.

Both Hayes and partner Adam Schlegel are set to guide this initiative and are working on expanding their management team.

Hayes remains an influential player in the crypto arena, known for his pioneering work with perpetual swaps and contributing to innovations such as Ethena’s synthetic dollar.

Despite the ambitious plans, Maelstrom did not provide further comments on its strategy when approached by CoinDesk.

This venture highlights a growing trend within the crypto space, as investors begin to focus on sustainable and cash flow-driven business models.