Henry Kravis-backed ParaFi raises $125 million for new fund

ParaFi raises $125M fund backed by Henry Kravis. Key facts: Crypto-focused VC firm ParaFi closed its latest vehicle with support from the KKR co-founder, reflecting sustained TradFi interest in digital assets. Trends & implications: Signals measured institutional allocation to blockchain amid 2026 market recovery, though fund size remains modest versus peak-cycle vehicles. Upside: Kravis’s network offers portfolio companies governance and scaling expertise. Risk: Persistent crypto volatility and regulatory shifts could challenge returns. Alpha angle: This may serve as a quiet bridge for KKR ecosystem exposure to tokenized infrastructure—potentially undervalued if on-chain finance matures faster than expected.