The family office of U.S. hedge fund veteran Jim Pallotta is deepening its exposure to decentralized finance (DeFi), as wealthy investors increasingly channel capital into digital assets.
According to Bloomberg, Pallotta’s Raptor Group is backing a second fund managed by its venture arm, Raptor Digital, which is targeting $200 million from family offices and institutional investors.
The new vehicle is set to launch in the coming weeks, after the firm returned capital from its debut $60 million fund closed in 2023. That initial fund was also supported by Abu Dhabi’s Mubadala Investment Co.
Pallotta, 67, previously served as vice chairman at Paul Tudor Jones’ Tudor Investment Corp., where he oversaw a $12 billion portfolio before establishing his family office.
Raptor Digital, originally launched in 2021 under the name RW3 Ventures, was co-founded with Pete Najarian and Joe Bruzzesi, former executives at crypto infrastructure firm Bitgo.
Its portfolio now includes more than three dozen companies, such as digital asset recovery firm CAT Labs and AI chip developer Cornami.
The move underscores a broader trend among wealthy families and investment offices turning to DeFi and blockchain opportunities.
Billionaire investor Stanley Druckenmiller’s family office recently considered investing up to $50 million in blockchain-based lender Figure Technology Solutions, while London-based Alta Advisers, which helps manage the Rausing family fortune, disclosed stakes in Coinbase and MicroStrategy earlier this year.
A Goldman Sachs survey cited by Bloomberg found that about one-third of 245 global family offices now hold cryptocurrency investments, more than double the share in 2021.
Despite years of volatility, funding for Web3 firms has also rebounded in 2025, highlighting renewed appetite for blockchain-driven innovation.
Pallotta, also a former co-owner of the Boston Celtics and ex-president of Italy’s AS Roma, is positioning his family office at the center of this wave of institutional crypto adoption.