The private equity investment firm Cresco Capital Partners is expected to reach $250 million in total assets under management with the launch of a new fund that has an initial target of $150 million, the firm said Thursday.
Founded in 2014, the firm already manages approximately $100 million in assets under management.
With the launch of what's known as Fund III, the firm is changing its name to Entourage Effect Capital, in reference to the synergistic effect produced by different cannabinoids in the human body when consumed in combination with each other.
“Having raised $100 million over the past five years, investor appetite for our established approach of capitalizing and bringing distinct companies together has compelled us to launch our largest fund to date,” said Matt Hawkins, Entourage Effect's managing principal.
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The objectives of Fund III will be primarily focused on advancing cannabis businesses as diverse as science and bioscience operators, license aggregators, vertically integrated licensed operators and retailers as well as consumer packaged goods, biotech, ag-tech, media, technology and ancillary services.
Between 10% to 20% of the fund’s investments will be targeted at growth stage companies over a five-year investment period and seven-year fund term.
As of today, the company has invested in 32 companies and managed 11 exits, including ventures like Acreage Holdings Inc (OTC: ACRGF), Green Thumb Industries Inc (OTC: GTBIF), MJ Freeway, Ebbu and Form Factory.
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