Full name: Matt Hawkins
Title: Managing Principal and Co-founder
Company: Entourage Effect Capital (formerly Cresco Capital Partners, LLC) is a United States private equity investment firm, dedicated to investing in the cannabis industry.
Years at current company: 5
Education profile: University of Texas at Austin
Most successful professional accomplishment before cannabis:
Sale of a company owned by several partners and me. Assets included a multi-hundred million dollar multifamily real estate portfolio.
Company Mission: EEC’s mission is to actively leverage our sector and investment experience, networks, and investment process, to identify, invest and accelerate high quality emerging growth companies. EEC stands apart by taking an active role in adding value to the management teams of its companies. Some have called it a “Keiretsu”, as we are in Cannabis, we call it “the Entourage Effect.” The Entourage Effect is a term used to describe a novel method of endocannabinoid regulation. It means that the compounds within the cannabis plant work in concert to create a sum greater than any of its individual parts.
Has the company raised any capital (yes or no):
if so, how much?:
Since inception in 2014, the firm currently manages approximately $100 million in assets under management. EEC has invested in 32 companies with a total of 11 exits. Both prior funds consist of current and exited positions in some of the most recognizable names in the cannabis market including Acreage Holdings, GTI, MJ Freeway, Ebbu, Form Factory, and more.
Any plans on raising capital in the future?
We just announced the launch of our Fund III with an initial target of $150 million, representing its largest fund to date. This is the third consecutive fund launched by the firm and when fully subscribed, will bring total assets under management to approximately $250 million. Fund III will target a diversified investment approach across the value chain including, but not limited to, science and bioscience, license aggregators, vertically integrated licensed operators and retailers as well as consumer packaged goods, biotech, ag-tech, media, technology and ancillary services. The fund is expected to invest directly in approximately [10 – 20] growth stage companies within target sectors over a five-year investment period and seven-year fund term.
Most important company 5 year goal:
To be the most valuable name on our portfolio companies cap table and have funded the cannabis companies that will lead this industry.