David Rubenstein, co-founder of private-equity firm Carlyle Group, said he has crypto-specific investments. Initially a crypto-skeptic, the billionaire revealed that he has taken personal positions in several crypto-focused companies.
Mr. Rubenstein was interviewed on CNBC’s Squawk Pod on 2 September.
He sounded optimistic about the state and progression of crypto regulations in the US. Rubenstein’s change in stance shows that people are steadily putting more faith in crypto, underlining the fact that crypto isn’t the bubble people thought it would be.
- David Rubenstein, co-founder of the Carlyle Group, said on CNBC’s Squawk Pod (2 September 2022) that he holds personal positions in crypto-focused companies.
- His three picks at that stage of the cycle were health care, fintech and crypto.
- He prefers backing companies that build in the sector over buying project tokens directly.
- The earliest visible link is December 2020, when Declaration Partners — an adviser to his family office — led a $142 million Series C in blockchain infrastructure firm Paxos.
- These are Rubenstein’s own bets, described in a personal capacity, rather than Carlyle Group positions.
What was the interview about?
The interview discussed Rubenstein’s new book, How to Invest: Masters on the Craft. During the interaction, Rubenstein talked about the market’s reaction to aggressive rate hikes, the energy crisis across the European continent, and some of his investment bets. As for the bets, he mentioned fintech, healthcare, and blockchain (crypto) as his preferences.
Here is what Squawk Box tweeted:
The billionaire added that a handful of blockchain-specific investments and crypto-centric products are here to stay.
While Rubenstein has made fresh revelations in the interview, we can now connect the dots and see that he was always been close to investing in crypto. In fact, his tryst with crypto dates back to December 2020 when Paxos— a blockchain infrastructure service provider— raised $142 million in a Series C funding. Leading the funding round was Declaration Partners, a firm that also provided investment advice to Rubenstein’s office.
Optimistic about crypto space
Rubenstein said crypto-related companies have intrigued him the most, not just the project tokens. Also, he continues to eye the space despite the market correcting a lot in 2022. He said his optimism stems from the fact that the younger generation is coming into the space.
On another note, Rubenstein was effusive in his praise for FTX founder Sam Bankman-Fried for backing the crypto space and injecting liquidity post the CeFi meltdown.
FAQs
1. Which crypto investments does David Rubenstein have?
He has not published a full list. In the CNBC interview he said his money goes into crypto-focused companies rather than into individual tokens. The one deal that is on the public record is Paxos, whose December 2020 Series C was led by Declaration Partners, an adviser to his family office.
2. Does the Carlyle Group invest in crypto?
Rubenstein described these positions as his own, made in a personal capacity. They are not Carlyle Group fund holdings, and he co-founded the firm rather than running it day to day.
3. Was Rubenstein always positive on crypto?
No. He spent years as a public skeptic before shifting his view, and the September 2022 interview was the first time he said plainly that he holds crypto-linked investments.
