Meanwhile Group, the parent company of the first and only life insurance company entirely denominated in a digital asset, has unveiled its first-of-its-kind bitcoin private credit fund, Meanwhile BTC Private Credit Fund LP. The fund aims to provide institutional investors with exposure to BTC’s growth while offering a conservative BTC-denominated yield.
Meanwhile Group’s $20 million seed funding was led by CEO of ChatGPT Sam Altman, Lachy Groom, and Gradient Ventures (Google).
The fund targets a conservative BTC-denominated yield of 5% during its closed fund’s term.
Meanwhile Advisors carefully selects creditworthy institutional counterparties to ensure the safety and quality of investments.
The fund adopts a conservative risk management approach to mitigate potential risks associated with lending BTC and its structure ensures tax efficiency for its investors by converting USD contributions into BTC immediately.
Fees are charged in BTC, aligning the interests of the fund and its limited partners.
Meanwhile Group Advisors Expertise and Experience
Meanwhile Advisors, the fund’s investment manager, boasts a team of financial experts with deep experience in both digital assets and institutional investments. The team has a proven track record of working with institutional borrowers and lending BTC at term.
The private credit fund is designed with a top-notch security infrastructure to prioritize the protection of investors’ valuable BTC assets. Meanwhile Advisors is also committed to adhering to regulatory requirements and is working with ACA Global as its compliance partner.
Meanwhile Group envisions a robust BTC economy supported by innovative financial products. The company plans to expand its range of digital-asset-denominated financial products in the coming months, including long-term life insurance and accidental death coverage in BTC.
Overall, the Meanwhile BTC Private Credit Fund is a unique and promising investment opportunity for institutional investors seeking exposure to BTC while generating a conservative yield. The fund’s focus on institutional borrowers, conservative risk management, and tax efficiency make it an attractive option for those seeking to navigate the evolving landscape of digital-asset-denominated financial products.
Interview With Director of Wealth & Asset Management, Danny Baer
BitcoinNews had the chance to have an exclusive interview the Meanwhile Group’s director of wealth & asset management, Danny Baer.
BitcoinNews: What makes Meanwhile BTC Private Credit Fund LP unique compared to other bitcoin-based investment vehicles?
Baer: It is a single illiquid closed-end fund with all fund economics in BTC. Returns, management fees and carried interest are in BTC. LPs contribute USD, immediately after the single close we will convert the USD to BTC so LPs have 100% exposure to BTC through the life of the fund, then we give them the option to receive distributions in BTC or convert back to a currency of their choice.
It is open only to Qualified Purchasers (UHNW & Institutions) and the target return is 5%. The idea is for people that want to increase their allocation to BTC to have a BTC-yield vehicle. You contribute 100 BTC worth of USD, we convert it to 100 BTC, after a year you now have 105 BTC assuming a 5% BTC return. Doesn’t matter if BTC is worth $40k or $100k, your returns are in BTC.
BitcoinNews: How does Meanwhile Advisors manage risk in the fund?
Baer: We operate just like a traditional private credit operation. We have an investment committee, robust enterprise risk management, and have partnered with the best-in-class service providers.
BitcoinNews: What methodologies and technologies for storing bitcoin-denominated funds do you adopt?
Baer: We use Anchorage Digital as our BTC custodian.
BitcoinNews: What are the tax implications for investors in the fund?
Baer: Same as an investor in any other traditional private credit fund. The fund will make periodic distributions to help cover the taxes generated from the income produced by the fund.
BitcoinNews: What are the long-term plans for Meanwhile Group’s expansion into digital-asset-denominated financial products?
Baer: We think there is something exciting about taking a boring concept and building out a BTC offering that is compliant. It’s what we’ve done with the Insurance company and it’s what we’re doing by starting with such a basic private credit fund. We believe that there will be a robust BTC economy, and that with it there will be financial products. We look forward to continuing to build those out and further develop the BTC ecosystem.
BitcoinNews: How does the launch of Meanwhile BTC Private Credit Fund LP align with the broader growth of the Bitcoin ecosystem?
Baer: There is clearly increased institutional interest in BTC with the momentum behind the Spot ETF applications. We think of our fund as an active allocation to BTC as opposed to an ETF allocation being passive. It’s almost like putting cash in a MMF yielding 5% as opposed to holding the cash outright.
BitcoinNews: What assurances do you provide to your investors regarding counterparty risk?
Is it possible for an investor to lose his funds if the counterparty receiving the financing turns out to be unprofitable or insolvent?
Baer: There is inherent risk with any investment. We target conservative yields and lend to creditworthy institutional counterparties. We are not lending to speculative retail investors. We focus on companies that have legitimate business and cash flows in BTC.
BitcoinNews: Is the regulatory context in which the Bitcoin Private Credit Fund is set clear and favorable?
Is there a regulatory risk? If so, how concrete is it?
Baer: We have gone above and beyond with the requirements of a private credit manager in terms of adherence to compliance. We work with ACA Global as our Compliance partner, have written a Compliance Manual, and have aspirations to register with the SEC once we raise enough assets in the fund to satisfy their threshold.
BitcoinNews: In which countries do you operate?
Baer: The Investment Manager, GP and LP are all Delaware entities. The fund is open solely to U.S. investors.