Crypto Reporter
Shalini Nagarajan
Crypto Reporter
Shalini Nagarajan
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VMS Group, a Hong Kong multifamily offices with deep roots in private equity, is making its first push into digital assets as clearer regulations and institutional momentum pull traditional investors into the crypto space.
Bloomberg reported Tuesday that the firm, which manages nearly $4b for some of the city’s wealthiest families, plans to allocate up to $10m to Re7 Capital, a London-based hedge fund focused on decentralized finance strategies.
VMS managing partner Elton Cheung said the move reflects a shift in how the firm approaches liquidity and diversification.
Founded two decades ago, the Hong Kong firm has historically focused on private equity and long-term bets across sectors such as property, pharmaceuticals and technology.
But with companies staying private longer and exits becoming harder to time, the firm is now leaning into more liquid strategies, including digital assets.
VMS Chooses Hedged Approach to Crypto Over Direct Token Holdings
“We thought this was the right time because of growing demand and because we see clearer legislative and government support from various jurisdictions, as well as large institutional support and endorsement,” Cheung told Bloomberg. He did not disclose specific clients.
Instead of buying volatile tokens like Bitcoin, VMS chose to work with Re7, which offers a market-neutral strategy.
The fund earns yield by providing liquidity on decentralized exchanges and lending stablecoins, while hedging to reduce price swings. That approach aligns more closely with the risk frameworks of legacy family offices that are seeking exposure without speculative downside.
“The reason investors keep coming back to crypto is the asymmetry of risk and return,” said Re7 founder Evgeny Gokhberg. “Typically, people think about asymmetry in crypto as ‘lose it all or make a 100x.’ That’s rarely a fit for a serious allocator with a reputation to lose.”
Re7, founded in 2021, claims to have consistently delivered double-digit returns, though it did not disclose exact figures.
Next-Gen Wealth Influences Hong Kong Family Office’s Shift Toward Broader Digital Asset Adoption
VMS’ crypto strategy goes beyond hedge fund exposure. Zhi Li, who joined the firm in December to lead digital asset investments from London, said the team is studying broader applications, including blockchain payments and infrastructure.
One current area of interest is integrating crypto-based transactions at a real estate development the firm operates in Vietnam.
“There is very strong institutional and family interest in getting regulated digital asset exposure,” said Li. “We have seen the younger generation of families wanting to do something different.”
As family offices evolve to serve new wealth dynamics and generational preferences, VMS’s entry into crypto reflects a broader shift. Once reluctant, legacy capital is now stepping into digital assets, not for hype, but for structure, yield and strategic positioning.
