Eldrige leads Digital Currency Group’s maiden $600 million debt funding spherical
On Thursday, the Digital Currency Group (DCG) introduced that it has raised $600 million in a brand new credit score facility, making its debut into the debt capital markets. The debt funding spherical was led by personal fairness agency Eldridge.
The firm stated that the rise, which provides DCG with a credit score facility enabling it to attract on as wanted, “enhances DCG’s strategic, operational, and financial capabilities” by decreasing its price of capital and boosting the event of its funding portfolio and totally owned enterprises.
— Marcus (@marcswane) November 18, 2021
Davidson Kempner Capital Management, Francisco Partners, and Capital Group had been among the many traders within the spherical. The agency intends to make use of the brand new money infusion to develop its funding portfolio and wholly-owned operations, in line with DCG.
The Digital Currency Group is a serious participant within the crypto area. Grayscale Investment, which is run by DCG, manages greater than $50 billion in property. In mid-October, DCG’s chief Barry Silbert declared that the agency is contemplating transitioning to a spot-settled ETF.
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The elevate comes two weeks after DCG bought $700 million price of shares led by a pair of SoftBank funds. The sale raised the worth of the corporate to $10 billion. In a Wall Street Journal interview, Adam Silbert stated that the funding was not meant to lift cash for DCG, however quite “an opportunity for early investors to exit and take profits.” The firm claimed that all the cash raised was paid out to the promoting shareholders, with none of them promoting their total stake.