Steven Tananbaum’s GoldenTree Asset Management Sells Crypto Unit to Investment Firm Republic

Global asset manager GoldenTree has sold its digital assets unit to investment firm Republic, with former partner Joe Naggar set to join the business.

Republic announcement Tuesday’s acquisition of GoldenChain, a wholly-owned subsidiary of GoldenTree, which managed the company’s digital asset funds. Nagger will become CEO and CIO of the new digital assets-focused entity, Republic Digital.

Republic said the deal was aimed at strengthening its market position. It will leverage the combined expertise to explore new opportunities in the digital assets space.

“We are thrilled to welcome GoldenChain to the Republic family,” Republic President Andrew Durgee said in a statement. “We are confident that the combined strengths of Republic and GoldenChain will create exciting opportunities for our investors. »

The deal follows the announcement, reported exclusively by The Block in November, that Naggar was set to leave GoldenTree. Naggar was previously Head of Digital Assets at GoldenChain and former Managing Director at Morgan Stanley with over 25 years of investment experience.

“We are grateful for Joe’s invaluable contributions to GoldenTree over the years and look forward to him leading this new chapter for Republic Digital,” said Steve Tananbaum, Founder, Managing Partner and Chief Investment Officer of GoldenTree.

Naggar said Bloomberg that the acquisition was finalized last week. “The acquisition doesn’t change the fund at all, it just changes the ownership,” he added.

The crypto fund was not a “good solution”

GoldenTree made the decision in September 2023, citing that the crypto fund was not a “perfect fit” for an asset manager focused on credit and distressed markets, particularly given “regulatory and reputational issues » associated with the crypto industry, Naggar said. Bloomberg.

“GoldenTree was a great partner throughout the process, but decided it wasn’t appropriate,” Naggar said. “We decided to split the company one way or another.” GoldenChain was managing between $120 million and $150 million in assets at the time, Naggar added.

The deal amounts to an exit from the crypto industry for GoldenTree, which will no longer control any crypto entities, but will only invest in them, a source familiar with the matter told The Block.

After the acquisition, GoldenTree will remain an investor in GoldenChain, which is now called Republic Digital. “We intend to remain investors in GoldenChain and believe that GoldenChain’s transition to Republic places the digital assets sector in the best position for growth,” Tananbaum said.

Bloomberg reported that six more GoldenChain employees are expected to join Republic. Avi Felman, head of digital asset trading at GoldenTree, has left GoldenChain but is not among those joining Republic.

The companies told The Block they could not disclose the terms of the deal, citing confidentiality.

Updated with confirmation of GoldenTree’s exit from the crypto sector following the deal.

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