ONE of the UK’s first cannabis investment funds is being backed by two of the industry’s global leaders as it closes in on its first $75m investment.
News of the launch of the Verdite Capital Fund emerged last month and it officially opened its doors, today.
Formed by London-based entrepreneurial corporate finance and investment house Chrystal Capital Partners LLP it is looking to raise $100m by the end of the year.
Bruce Linton In As Advisor
In a press release announcing its launch Chrystal says it has formed a football-size team of 11 sector experts, which includes Bruce Linton, the founder of Canopy Growth and Colin Stott, former R&D Director of GW Pharmaceuticals.
It also says its first close of US$100m is planned for the end of 2020, with US$75m committed from a cornerstone investor.
Investment partner Kingsley Wilson said: “We are delighted to launch Verdite, a fund that will address the equity funding gap in the hugely exciting and growing medicinal cannabis market.
“Overseen by a team with decades of cannabis and private equity experience, we believe that Verdite presents the vehicle through which investors can profit from the significant value creation that is now unfolding globally across the legal cannabis healthcare space.”
Looking For Up To 15 Investees
The Verdite private equity fund is targeting investments in ‘well-managed, fast-growing companies active in legal and regulated cannabis and cannabinoid markets around the world, with a focus on the medical, pharmaceutical and wellness sectors’.
Verdite says it initial aim is to create a diversified portfolio of 10-15 investments in these markets, adding the Fund will not invest in the recreational market.
Reflecting on the growth of the industry and its future prospects it highlights the total estimated size of the cannabis market at $350bn a year, of which just $15bn is currently legal and regulated.
Cannabis – A Once in A Lifetime Opportunity
Adding: “An industry of this size coming out of prohibition is a once in a lifetime investment opportunity. Over the next decade the market will transition into a legal market, where it can be regulated, monitored, taxed and most importantly for investors, profited from.”
Chrystal made its first cannabis investment four years ago and has now deployed over $210m into the sector on behalf of investors.