$100 Million Investment Fund Will Assist Cannabis Companies
Culver City-based MedMen, a management company focused on the cannabis industry, has announced a $100 Million private equity fund. Up-and-coming leading cannabis businesses will have the opportunity to break into a larger market.
The MedMen Opportunity Fund will provide the first private equity vehicle of its kind. The fund will offer unrivaled resources and potential for investing partners.
“We pride ourselves on being the industry leader in bringing institutional business practices to the cannabis industry,” said MedMen CEO, Adam Bierman in a press release. “That thesis continues with the formation of the Fund which provides an unprecedented opportunity to monetize the fastest growing industry in the United States.”
Although virtually no established publicly-traded American companies are yet recognized, at least 55 cannabis-related companies traded on the penny stocks last year. MassRoots set about to become the first American cannabis company to be listed on the NASDAQ market, only to be rejected as a risk.
According to Bierman, the United States still has a long way to go. “We are not close, here in the US, to a place where you’re going to see real capital-market exposure and participation and activity for this space,” Bierman told Business Insider. “We are not close here in the US to seeing marijuana become federally legal.”
MedMen partnered with Wicklow Capital, a prominent investment firm that’s willing to work with the cannabis industry. Wicklow Capital is the primary investor of Pharmacann, a company that holds medical cannabis licenses in the states of Illinois and New York. Illinois and New York have a low number of licensed facilities and have potential to grow into larger markets. Wicklow previously invested in Sofi, Motif Investing, Twitter and more. MedMen’s firm is currently invested in Illinois, California and Nevada and is now eyeing New York, Arizona and Massachussetts. All of those states will likely have recreational cannabis on the ballot in November.
MedMen joins Privateer Holding, another private equity firm focused on legal cannabis. Investing in the cannabis industry, in the eyes of major investors, is a high-risk decision. MedMen is considered the most institutional platform to serve the cannnabis industry.
The fund will be available to accredited investors with financial assets worth more than $1 million before taxes or meet other criteria. Bierman hopes to reach his goal of $100 million by the first quarter of 2017.
Things are changing, and one major indicator is Microsoft’s willingness to partner with Kind Financial and invest in the cannabis-software arena. No one expected the industry to evolve at the rate it is evolving now.
25 states have now legalized cannabis and business, of course, has been booming. “The cannabis business is very operationally intensive. There has yet to be a Fund platform that combines proprietary access to diversified investment opportunities coupled with execution capabilities in the same vehicle, until now,” said MedMen Chief Strategy Officer, Chris Ganan.
The range of cannabis laws across the nation can be confusing, but MedMen is here to help navigate with business strategies.
Benjamin Adams has been a journalist since 2006 and is the Californian correspondent for Cannabusiness.com.
His written work has been seen in Cannabis Now Magazine, Culture Magazine, and Treating Yourself Magazine. He’s also written for Merry Jane and MedicalMarijuana.eu
Benjamin studied Art and Argumentative Writing at the University of Utah.
He’s tried cannabis in places ranging from Copenhagen to Jamaica.