CANNAINVESTOR Magazine March / April 2017 - Page 126


Private Equity firms and Cannabis.

Private Equity firms can operate at a state level, which means that as long as they’re following state laws, they aren’t too exposed to legal issues. This is why there are already P/E firms that have more than $100M available in their investment pool.

Privateer Holdings was the first to cross $100M in raised capital, but rest assure they won’t be the last.

The reason this relationship between the Cannabis industry and Private Equity firms is going so well is simple – it is very beneficial to both parties, and it will only get better in the future! The entrepreneurs in the Cannabis industry needed a source where they can get funding for their innovative ideas, and Private Equity firms are the perfect source for their capital needs. P/E players are always looking for investment opportunities that are going to see an explosion in growth, and if you see the writing on the wall, the Cannabis industry is perfect for their portfolio.

P/E players acquires companies primarily because of the Human Capital value. Human Capital – which can be thought of as the knowledge, skills, ideas, and commitment of employees – plays a big role in creating companies that are attractive targets for acquisitions.

Alex R. Thiersch, CEO, Salveo Capital