Deus X Capital shuts down as Morton family backers split into AI and fintech arms
In brief
- Deus X Capital told CoinDesk it has ceased operations, with a formal unwind set for Jan. 31, 2027.
- CEO Tim Grant will lead TensorX, an AI venture inside Shane Morton's new vehicle, Darius.
- CIO Stuart Connolly stays on to oversee the transition; some portfolio businesses will keep operating.
- Deus X claims 36.5% annual returns since inception but declined to disclose total capital.
Where the backers are going
The split is a family affair. The Morton family investors behind Deus X are dividing their investment activities into two new vehicles. Shane Morton is establishing Darius, which is focused on artificial intelligence, while Owen and Jason Morton are setting up 95 (a vehicle aimed at markets and fintech).
Grant isn't leaving the Morton orbit. He told CoinDesk he'll become CEO of TensorX, an AI venture within Darius owned by Shane Morton, one of Deus X's founders and backers. Grant ran Galaxy Digital's Europe, Middle East and Africa business before joining Deus X.
“We want to be a prominent player in AI in Europe,” Grant told CoinDesk in an interview.
Some portfolio businesses will keep operating with the involvement of existing stakeholders, according to the company.
A three-year run
Deus X debuted in October 2023 with $1 billion in existing investments and capital available for deployment (that was the launch figure, not a current tally). Its strategy spanned private equity, venture capital and hedge fund allocations across digital assets, blockchain, fintech and institutional capital markets, and the firm had a presence in Malta, London and the United Arab Emirates.
Initial investments included stakes in Galaxy Digital and asset manager Hilbert Group, plus allocations to several hedge funds. In September 2024 it launched Solstice Labs to build institutional-grade defi products accessible to a broader range of investors. CoinDesk has also reported that the portfolio included proprietary trading firm Alpha Lab 40 and crypto prime broker Cor Prime, which launched with a $100 million risk-capital commitment from Deus X.
Deus X says it generated annual returns of 36.5% since inception. It declined to disclose its total capital.
Galaxy Research flags AI pull on venture capital
Galaxy Research said in September that interest in artificial intelligence was diverting attention from digital assets and adding to venture firms' fundraising challenges.
The reason Deus X gave CoinDesk for the shutdown is a different one: its backers are pursuing separate investment strategies.
Frequently asked questions
When will Deus X Capital formally wind down?
Deus X told CoinDesk it will formally unwind on Jan. 31, 2027. Chief Investment Officer Stuart Connolly will remain at the firm to oversee the transition, and some portfolio businesses will continue operating with the involvement of existing stakeholders.
What are the Morton family backers of Deus X doing next?
The Morton family investors are splitting their investment activities. Shane Morton is establishing Darius, focused on artificial intelligence, while Owen and Jason Morton are setting up 95, focused on markets and fintech. Deus X CEO Tim Grant will lead TensorX, an AI venture within Darius.
