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Key Takeaways
- Vivo Federation and Lean Ventures will jointly acquire $300 million in Ripple Labs shares for South Korean investors.
- This investment structure offers VivoPower exposure to Ripple Labs and XRP upside without using its own capital.
VivoPower International PLC, which is transforming into an XRP-focused digital asset enterprise, announced Friday that its Vivo Federation unit has partnered with Lean Ventures in a definitive joint venture to purchase $300 million worth of Ripple Labs shares.
Under the agreement, Lean Ventures will arrange for the establishment of a dedicated investment vehicle to acquire the shares. Lean Ventures is a licensed South Korean asset manager that oversees funds for the Government of South Korea and other limited partners.
Vivo Federation will handle the acquisition and management of Ripple Labs shares. The entity has received formal approval from Ripple Labs to purchase an initial batch of preferred shares and is now in direct discussions with institutional investors to acquire additional shares.
VivoPower is expected to earn $75 million in management and performance fees over three years, based on $300 million in assets under management.
This arrangement gives the company financial exposure to any potential upside in Ripple Labs and XRP, without using its own capital.
VivoPower’s shares surged nearly 12% in early Friday trading, according to Yahoo Finance data.