Republic Acquires GoldenTree’s Digital Asset Unit, Appoints Former Partner as CEO

  • GoldenTree’s decision to sell its digital asset unit, GoldenChain, to investment firm Republic reflects a strategic shift in investment focus. 
  • The move away from managing digital asset funds aligns with GoldenTree’s core expertise in credit and distressed markets.

Global asset manager GoldenTree has finalized the sale of its digital asset unit, GoldenChain, to investment firm Republic, marking the conclusion of a significant acquisition in the financial sector. This transaction comes merely two years after the establishment of GoldenChain in 2022, signaling a strategic shift in GoldenTree’s investment focus.

Republic, a prominent player in the investment landscape, announced the acquisition of GoldenChain, which managed GoldenTree’s digital asset funds. As part of the deal, former partner Joe Naggar, previously Head of Digital Assets at GoldenChain, will assume the role of CEO and CIO at Republic Digital, the newly formed digital asset-focused entity under Republic.

The acquisition is seen as a strategic move by Republic to strengthen its position in the digital asset space and explore new avenues for growth. Andrew Durgee, President of Republic, expressed confidence in the combined strengths of Republic and GoldenChain, emphasizing the potential for compelling investment opportunities for their investors.

The decision to divest the digital asset unit follows the departure of Joe Naggar from GoldenTree, a move first reported by The Block in November. Naggar, a seasoned professional with over 25 years of investing experience, brings valuable expertise to Republic Digital as its new leader.

The acquisition was finalized recently, with Naggar highlighting that the transaction does not alter the structure of the fund but merely changes ownership. He also noted that the decision to sell the digital asset unit stemmed from GoldenTree’s assessment that the crypto fund did not align with its core focus on credit and distressed markets, citing regulatory and reputational concerns associated with the crypto industry.

Despite the sale, GoldenTree remains an investor in GoldenChain, now rebranded as Republic Digital, reflecting its continued interest in the digital asset space. Steve Tananbaum, Founder, Managing Partner, and Chief Investment Officer of GoldenTree, affirmed the commitment to supporting the growth of Republic Digital following the transition.

As part of the acquisition, Republic will welcome six additional employees from GoldenChain, further enriching its talent pool in the digital asset domain. However, Avi Felman, former Head of Digital Assets Trading at GoldenTree, has departed from GoldenChain and will not be joining Republic.

The terms of the deal remain undisclosed due to confidentiality agreements between the involved parties. Nevertheless, the acquisition marks a significant development in the financial landscape, reflecting Republic’s strategic expansion into the digital asset sector and GoldenTree’s strategic realignment of its investment focus.

Republic’s acquisition of GoldenTree’s digital asset unit, GoldenChain, underscores a strategic move in the financial sector, signaling Republic’s commitment to expanding its footprint in the digital asset space. With former partner Joe Naggar at the helm of Republic Digital, the newly formed entity is poised to explore compelling investment opportunities and drive growth in the evolving landscape of digital assets.

Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Mehar Nayar

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