GoldenTree Divests Digital Assets Unit, Shifting Focus and Empowering Republic in Digital Asset Arena

Global asset management firm GoldenTree has sold its digital assets unit, GoldenChain, to investment firm Republic. Former GoldenChain partner Joe Naggar will lead Republic Digital, the new entity formed from the acquisition. GoldenTree's decision to divest its crypto division reflects the company's focus on credit and distressed markets, while Republic aims to strengthen its digital asset offerings and explore new opportunities in the space. The deal marks GoldenTree's exit from direct crypto ownership, though it will remain an investor in Republic Digital. The transaction includes six GoldenChain employees joining Republic, excluding head of digital asset trading Avi Felman.

GoldenTree Divests Digital Assets Unit to Republic, Marking Strategic Shift

New York, March 7, 2024 - Global asset management firm GoldenTree has announced the sale of its digital asset subsidiary, GoldenChain, to investment platform Republic. This transaction marks a significant move for GoldenTree as it focuses its operations on its core strengths while Republic expands its digital asset offerings.

The acquisition of GoldenChain, a wholly-owned subsidiary of GoldenTree, will see Joe Naggar, former partner at GoldenTree, assume the role of CEO and CIO of the newly formed digital asset-focused entity, Republic Digital. Naggar, who previously served as Head of Digital Assets at GoldenChain and former Managing Director at Morgan Stanley, brings over two and a half decades of investment experience to his new position.

Republic, a leading investment platform, aims to leverage GoldenChain's expertise to strengthen its position in the digital asset market. The combined entity will explore new opportunities in this rapidly evolving sector.

"We are excited to welcome GoldenChain to the Republic family," said Republic President Andrew Durgee. "The combined strengths of Republic and GoldenChain will create exceptional opportunities for our investors."

GoldenTree's decision to divest its digital asset unit stems from strategic considerations. According to sources familiar with the matter, the firm determined that the crypto fund managed by GoldenChain was not a suitable fit for its primary focus on credit and distressed markets, particularly in light of regulatory and reputational concerns associated with the crypto industry.

"GoldenTree was a valued partner throughout this process," said Naggar. "However, we mutually agreed that a separation was the optimal path forward."

At the time of the transaction, GoldenChain managed assets between $120 million and $150 million. Naggar emphasized that the acquisition does not alter the fund's strategy or operations, but rather transfers its ownership to Republic.

The transaction marks GoldenTree's full exit from the crypto industry. As a result, GoldenTree will no longer control any crypto-related entities but will continue to invest in the sector.

"We believe that GoldenChain's transition to Republic positions the digital asset unit for optimal growth," said Steve Tananbaum, Founder, Managing Partner, and Chief Investment Officer of GoldenTree.

In the aftermath of the acquisition, GoldenTree will retain an investor stake in Republic Digital, demonstrating its continued commitment to the digital asset ecosystem. Six additional GoldenChain employees are expected to join Republic, while Avi Felman, head of digital asset trading at GoldenTree, has departed GoldenChain but will not join the new entity.

Neither GoldenTree nor Republic has disclosed the financial terms of the transaction, citing confidentiality.

About GoldenTree

GoldenTree is a leading global asset management firm founded in 2000. The firm manages approximately $50 billion in credit and distressed assets, focusing on opportunistic, value-oriented investments across various asset classes. GoldenTree is headquartered in New York City with offices in London, Singapore, Tokyo, and Sydney.

About Republic

Republic is an investment platform that provides access to private market investments for individuals, family offices, and institutions. The firm offers a curated portfolio of investment opportunities across various asset classes, including real estate, startups, crypto, and art. Republic is headquartered in New York City with offices in London and Dubai.