Morgan Paxhia Archives - Green Market Report

StaffJune 24, 2019

Morgan Paxhia is a co-founder and Managing Partner of Poseidon, one of the longest running funds in the cannabis industry.

With over ten years experience in investing and finance, Morgan has developed a deep understanding of individual company analysis, portfolio construction, and risk mitigation. Since 2012, he has dedicated his investment focus primarily to the cannabis industry. Given the limited amount of information in this emerging vertical, the lack of institutional research, and relative industry immaturity, Morgan embraces an active approach of working closely with companies. He utilizes a “boots on the ground” methodology to better understand individual companies and the industry. Through his extensive travel across the US and Canada, reviewing hundreds of business plans and overseeing several existing cannabis investments, Morgan has developed Poseidon’s investment methodology tailored specific to the business of cannabis. Poseidon’s proprietary process is driven by the time spent in the industry and the considerable data collected over the last several years. He has created frameworks for analysis depending on sub-sector, company stage, and participation across the capital spectrum through our database of contacts, valuations, metrics, and other relevant factors.

Morgan started his investment career at UBS Financial Services working in a Wealth Management/ Investment Banking hybrid training program. The training brought a wide range of first hand experience working through several facets of the organization, including advisory teams managing assets for high net worth individuals and municipal bonds trading. Following UBS, Morgan transitioned to a Providence-based Registered Investment Advisor as an Investment Consultant. During that time, he worked under the partners of the firm doing fundamental portfolio management.

Morgan graduated from the University of Rhode Island with a B.S. in Applied Mathematics in 2005.

GMR Executive Spotlight Q&A –

Full birth name: Morgan C. Paxhia

Title: Co-Founder & Managing Partner

Company: Poseidon Investment Management

Years at current company: 6

Education profile: University of Rhode Island, BS in Applied Mathematics

Most successful professional accomplishment before cannabis: My professional accomplishment before Poseidon would go back to my entrance into the professional world of finance. I landed a job at UBS in one of their hybrid training programs. This program fast tracked my exposure to the world of finance as we worked through various parts of a large financial institution. My experience was especially memorable as I was on the municipal bond trading desk during the Fall of 2008, the very chaotic period of The Financial Crisis.

Company Mission: Poseidon dedicated its investment focus to the emerging cannabis industry with the launch of our first fund in January 2014. Investing in cannabis requires full time focus, and very active engagement. We are generally growth stage venture investors seeking legitimate companies that provide meaningful value in a highly fragmented, dynamic market.

Company’s most successful achievement: Our investors are our greatest achievement. We are industry leading investors because of their trust and support.

As a result, we have had the opportunity to build the longest running investment track record in cannabis, work with many great companies, and generate very strong returns.

Has the company raised any capital (yes or no): Yes

If so, how much?: Our firm currently has over $140 million in assets under management between our investment strategies.

Any plans on raising capital in the future? Poseidon focuses on making great investments on behalf of our fantastic investors. We will continue to raise and deploy capital in the cannabis industry as long as we continue to have great investment opportunities.

Most important company 5 year goal: Poseidon will be over ten years old and cemented its place in history as a significant contributor to the global cannabis industry.

Debra BorchardtOctober 31, 2017

Poseidon Investment Management has launched its second fund and plans to raise $100 to $150 million. As a result, the company made two new key hires to assist in the effort.

Tad Henderson is coming on board as a Managing Director and will be responsible for raising capital and management of the portfolio companies. Henderson was previously Chief Operating Officer at CALSTAR, an air ambulance operator and prior to that a Debt Transaction specialist. He will also help Emily and Morgan Paxhia, the founders of Poseidon Investment Management with selecting the investments for the new fund.

In addition to Henderson, Andrew Roche will be joining the company as an Investment Analyst. His role will be in due diligence using the skills he brings from being an auditor with Deloitte. There he audited large public companies and multi-billion portfolios. He will assist companies with their financial controls.

“These two new hires reflect our company culture and the desire to continue to build an industry, this is a critical moment for our team. Both Tad and Andrew’s experience are a strong addition to Poseidon – we feel the investors and portfolio companies will benefit greatly from the contributions of both,” said Poseidon’s co-founder and Managing Director, Emily Paxhia.

The company’s first fund was started in January 2014 and established the pair as some of the first investment professionals willing to take on the risk of cannabis investing. The team coined the phrase “harness the greenwave” and made it their trademark as they became pioneers in cannabis investing. Fund I will continue as Fund II ramps up.

“For the last four years, we have been focused on capitalizing a legal and compliant cannabis industry, launching first with a broad-based and mostly early-stage strategy. Leveraging this experience, we have a great understanding of the investable landscape and where the industry is heading,” said co-founder and Managing Director Morgan Paxhia. “Growing our team is essential to properly service future investment needs of cannabis and hemp. We are well positioned to capture significant opportunities along the growth and maturity curve of cannabis and hemp with the addition of Tad and Andy.”