VMS Group, a major Hong Kong-based multifamily office with approximately $4 billion in assets under management, has made its first formal move into digital assets. Rather than going all-in on volatile tokens, VMS is taking a more measured approach — allocating up to $10 million to Re7 Capital, a London hedge fund specialising in decentralised finance (DeFi) strategies.
This marks a significant shift for VMS, which has traditionally focused on private equity investments across sectors such as real estate, pharmaceuticals, and tech. With IPO timelines stretching and liquidity events harder to predict, the firm is now turning to alternative strategies — including crypto — to enhance portfolio flexibility.
A Risk-Adjusted Route Into Digital Assets
Managing Partner Elton Cheung explained that this step was driven by increasing investor appetite, coupled with regulatory clarity and institutional backing for digital asset markets. Rather than holding volatile coins directly, VMS has opted for a market-neutral strategy via Re7. This allows the firm to earn yield from decentralised exchanges and stablecoin lending, while hedging exposure to price swings — a model that sits better with the risk tolerance of traditional family offices.
Re7’s founder, Evgeny Gokhberg, added that family offices are drawn to the space not by speculative gains, but by the asymmetric return profile offered through well-structured exposure. Re7, founded in 2021, claims to have achieved consistent double-digit returns, though specific performance metrics were not disclosed.
More Than Just Hedge Fund Exposure
VMS is also exploring other areas within the crypto ecosystem. Zhi Li, who now heads the firm’s digital asset strategy from London, noted growing interest in blockchain applications ranging from payments infrastructure to tokenised real estate. One pilot initiative includes integrating crypto payments at a development project in Vietnam.
“There’s rising institutional and next-gen interest in regulated exposure to digital assets,” said Li. “We’re seeing younger family members pushing for a more forward-looking approach.”
This move signals a broader trend: legacy family offices, once cautious, are now starting to embrace digital assets. But rather than chasing hype cycles, firms like VMS are pursuing structured, yield-focused strategies that align with long-term capital stewardship.
