Cresco Capital Partners: PE Investing In The Cannabis Industry

The following is ValueWalk’s Q&A session with Matt Hawkins, the Managing Principal of Cresco Capital Partners, on investing in the cannabis industry.

Q: Can you tell us about your background?

I have been in private equity investing for over 20 years

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Q: What does your firm do?

We back best-in-breed management teams with investment capital in the legalized cannabis industry. Founded in 2014, the Firm is focused on deploying capital in strategic geographies and sectors within the cannabis space through a combination of opportunistic equity, convertible notes and senior secured debt with warrant protection. Since its inception, Cresco Capital Partners has deployed more than $50 million in 32 companies through CCP Funds I, II and co-investment vehicles.

Q: Do you have private or public weed companies ? Do you have an opinion on any big public ones like Aphira?

We only invest in private companies but we have public company holdings as well from private companies either going public or getting acquired by public companies.

Q: Do you find big alcohol or Tobacco companies making gains in this new industry?

They are certainly doing whatever they can to get into the space but given the federal illegality it is impossible for them to jump all the way in.

Q: Every time there is a new gold rush a lot of unscrupulous people get involved - this appears to be the case with marijuana- how do you avoid getting involved with questionable companies?

Our underwriting process is no different in this industry than it has been with every other private company we have backed in the past 20 years outside the cannabis industry.

Q: How is the global growth picture for Marijuana and how does that differ from the US?

Both are on hockey stick trajectories.

Q: What do you foresee in the future for the Weed industry in America?

It will continue to grow and evolve into one of the largest sectors of the GNP.

Q: If you were President what would you do about Marijuana and related substances?

I would be a proponent of taxing and regulating the cannabis industry at a federal level.


About Cresco Capital Partners

Cresco Capital Partners is a US private equity investment firm, dedicated to investing in the cannabis industry. Founded in 2014, the Firm is focused on deploying capital in strategic geographies and sectors within the cannabis space through a combination of opportunistic equity, convertible notes and senior secured debt with warrant protection. Since its inception, Cresco has deployed more than $50 million in 32 companies through CCP Funds I, II and co-investment vehicles.




About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and three kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own 2.5 grams of Gold