Generational Wealth Creation Event
My transition from Goldman Sachs and traditional finance to cannabis all started with three words:
Generational . Wealth . Creation .
I believe the cannabis industry will have ramifications for decades and be one of the largest wealth drivers we’ve seen. Will it be without volatility? No. Will it be without losers? No. Will it be? I believe so.
The question then becomes, when you find yourself in one of these periods, passionate about the change, and able to affect the outcome, it’s time to leap. Whether that means CANNABIS INVESTING or CANNABIS STARTUP BUILDING… here are the tools to leap.
Now while I’ve worked at some of the largest firms in investing, I won’t profess to be a clairvoyant. Far from it. But I’ve always been a ravenous student of history. As a former journalist that’s what we are taught, look for what’s hidden, find the truth, and don’t let stigma or societal expectations get in your way.
So, when I was first offered a chance to invest in cannabis in 2014, I jumped. Down the rabbit hole I went, I began to build a picture of the opportunity. The truth is that not everyone will win (public stocks in the space are too expensive IMHO), but there will be many winners. BIG winners. The winners will not all be monetary, but will be counted in lives, dollars, and impact.
And the winners will not all be monetary, but the wins will be counted in lives, dollars, impact and beyond.
I believe my new company Cresco Capital Partners, will be among those winners, doing well by doing good. But not everyone can afford to invest hundreds of thousands or millions in a PE fund.. so I share my resources with all of you.
Speaking to my mentor I thought he’d quickly label me nuts (or let’s be honest – as a user of the product). He, like many of my mentors, worked at firms like Carlisle, Goldman Sachs, KKR and Andreessen Horowitz, who are far from the cannabis epicenter.
Yet instead of concern and condemnation of my path less traveled, a crazy thing happened. He asked to invest.
As I spoke with the smartest investors I knew, it occurred again and again. While many worried about labeling myself a “woman of weed,” more savvy individuals wanted exposure. They voted with their dollars.
Only then did I feel the courage to listen to my gut. Here is the quantitative data that swayed me when my gut wasn’t enough:
Generational wealth creation event: This is an $18B current global market legally. In the US it is a $50B+ market when we combine the grey market – in fact, many (including yours truly) believe these figures are severely understated. We believe cannabis and hemp businesses will generate in excess of $1 trillion over the next decade.
Price Arbitrage: On the private side we can invest at a sizable valuation discount, while on the public side cannabis companies are trading at 50-200x earnings and the S&P is at all time highs. This is a dramatic price dislocation in a high growth market. (All this means – buying cheaper – selling higher is possible).
Strong Momentum: 34+ states have some segment legalized, 50 countries and we've seen $3B in US tax revenue. In investing we say, “Don’t fight the trend.” That applies double here.
It comes down to this:
Generational wealth creation.
Massive societal change.
Purposeful profitable pursuits.
Maybe you’ll realize like I did, that this will be one of most important industries of our lifetime. Then you have to decide, what are you going to do about it?
What I decided to do was to move out of traditional finance and into what I believe to be the best Cannabis PE fund in the business at CCP. But for many of you that may mean launching your own company in cannabis and needing help with fundraising, so I wrote a guide on that. For others it could mean investing directly so I am writing a guide on that.
The goal with cannabis, in my humble opinion, is democratization of access to this plant. Why should it be any different with opening up access to investing in and fundraising in this space. Why only for the wealthy and insiders?
Thus, below are your guides from me.
Now you may be asking yourself if. you want to make it democratic why make anyone pay even a few bucks. The truth is, we humans are silly, we don’t value what we do not pay for. So only dive in if you are going to actually use it. Otherwise soak on up all the free content I post everywhere else. It’s up to you whether to be the FEW who DO not the MANY who simply WATCH.
Hope to see you on the other side…. turns out the grass may sometimes actually be greener.
Managing Director, Cresco Capital Partners
Learn more about Cresco Capital Partners here.