Skybridge Capital boss Anthony Scaramucci – who took a bath on his crypto bets last year – has managed to secure half of the $50 million he’s raising for a new fund that will invest in beaten down private companies as his digital currency investments bounce back, On The Money has learned.
The man nicknamed Mooch – who famously became the shortest serving communications chief in White House history with his 10-day stint working for Donald Trump – lost nearly 40% in his biggest fund last year amid the collapse of Sam Bankman-Fried’s FTX.
Skybridge returned only 10% of the $1.3 billion in assets in its largest fund, despite investors asking to pull 60% of the fund’s capital for the Sept. 30 redemption period, according to a January regulatory filing reviewed by Bloomberg.
Bankman-Fried, who faces life in prison after being convicted of a massive fraud, had dropped $45 million to buy a 30% stake in Skybridge Capital in September 2022, weeks before FTX imploded.
But Scaramucci’s crypto investment vehicles have roared back to life, especially with the resurgence in Bitcoin.
The digital coin has climbed to more than $43,000 after bottoming out at around $16,000 last December following the implosion of Sam Bankman-Fried’s FTX the previous month.
Year to date, the First Trust SkyBridge Crypto Industry and Digital Economy ETF surged 108%.
Other private investment products, like his Coinfund focused on cryptocurrencies, have jumped 130%.
With these products paying off, money has flowed into the new investment vehicle – Skybridge Unicorn Recovery Fund, or SURF, or SURF – that was first floated in February, sources said.
The fund, which has yet to close, has already made preliminary investments in once high-flying companies like fintech firm Klarna Bank, software maker Netskope and canned water producer Liquid Death, a source close to the deals said.
All of the companies have been eyeing potential IPOs at hefty valuations.
Netskope is largely seen as a safe bet while Klarna’s valuation has fallen to roughly $8 billion after hitting more than $45 billion in 2021.
Liquid Death has nabbed a frothy valuation of $700 million but has some analysts noting a company that offers glorified bottled water could be short-lived.
The strategy of making bets on traditionally risky assets — companies with fluctuating valuations — seems to align with Scaramucci’s investing style.
Over the last few years, Scaramucci has placed significant bets on cryptocurrency.
Last year, SkyBridge Chief Investment Officer Ray Nolte revealed that 12% of the firm’s $7 billion in holdings are in Bitcoin.
Then the crypto-shy investors began running for the exits.
“Everyone is a long-term investor until they have short-term losses,” Scaramucci told On The Money last year.
But he was quick to add that he planned to “prove those people wrong.”
Looks like the Mooch did just that.
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