Cresco Capital Partners (Cresco Capital) announced today that it has closed an oversubscribed fund of $60 million. Founded in 2014, Cresco Capital was one of the first and largest private equity firms to focus solely on the legal cannabis industry. Although the two names are similar, Cresco Capital is not connected to Cresco Labs (OTCMKTS: CRLBF), which is a vertically owned cannabis company operating in 11 U.S. states.
“Surpassing our original goal of raising $50 million for CCP Fund II by almost twenty-percent not only represents a significant milestone for Cresco Capital Partners, it serves to validate the leadership role we play in providing growth capital and advisory services to companies within the cannabis industry,” said Matthew Hawkins, Managing Principal of Cresco Capital Partners. “With the overwhelming success of CCP Fund II, we are preparing to begin marketing a third fund in which we hope to raise $200 million. This fund will continue to target investments in value-add opportunities in the legalized cannabis space both plant touching and non-plant touching.”
To date, the company has raised more than $85 million and has invested over $50 million in 32 cannabis companies through two funds, CCP I and CCP II, and co-investment vehicles.
The company’s portfolio includes a diverse set of cannabis companies, ranging from cultivation to ancillary services. Several of Cresco Capital’s most notable investments include MJ Freeway, PROHBTD, NorCal Cannabis Company, Sunderstorm, Phylos Biosciences, Sublime, Cellibre, and Harborside/FLRish Inc. Most recently, Harborside closed a C$19.5 million private placement of subscription receipts, with Cresco Capital as one of its investors.
So far, the company has achieved seven exits between its two funds; including Acreage Holdings (OTCMKTS: ACRGF) and Green Thumb Industries (CNSX: GTII); who recently closed the acquisition of Integral Associates, which holds multiple retail dispensary licenses in California and Nevada, as well as two cannabis cultivation and processing facilities.