Sam Altman-Backed Crypto Startup Aims to Raise $100 Million for Bitcoin Private Credit Fund

According to Coincu, Sam Altman-backed crypto startup Meanwhile is working to raise $100 million for its innovative Bitcoin private credit fund. The fund, named Meanwhile Bitcoin Private Credit Fund LP, aims to provide institutional investors with access to Bitcoin while targeting an additional 5% bitcoin-denominated yield. Zac Townsend, the co-founder and CEO of Meanwhile Group, expressed optimism about the future value of Bitcoin, stating, "Our view is that bitcoin will be worth much more in the future." The fund plans to achieve a 5% yield by lending bitcoin to borrowers, with a target to raise $100 million and finalize the fundraising by the end of the first quarter of 2024. The fund adopts a single-close, closed-end structure, allowing limited partners (LPs) to contribute U.S. dollars, which are then promptly converted to bitcoin after the single-close. This bitcoin will be lent to borrowers, potentially yielding exponential outperformance if bitcoin prices rise during the fund's lifecycle. The minimum investment for LPs is set at $250,000, with no maximum limit. The fund has a three-year investment period, followed by a four-year harvest period, resulting in a seven-year total term. Capital is returned to investors during the harvest period, potentially returning the majority of the capital well before the seven-year mark. Meanwhile Bitcoin Private Credit Fund LP implements a 2% management fee and a 20% carried interest fee, both charged in bitcoin. This fee structure aims to align the fund's success with the performance of investors' bitcoin holdings. Addressing concerns about potential risks, Townsend emphasized the fund's contrast with collapsed crypto lenders, attributing the difference to conservative loans directed at creditworthy institutional borrowers, with Anchorage Digital serving as the custodian for the fund.