For a bunch of stoners the execs at High Times magazine were amazingly quick off the mark to capitalize on the newly legal marijuana business. Aldo Svaldi reports for the Denver Post via the Los Angeles Daily News:
Executives at High Times, a New York magazine that has covered the marijuana scene for four decades, are launching a new private-equity fund expected to boost a burgeoning American marijuana industry.
The HT Growth Fund plans to raise $100 million over the next two years to invest in cannabis-related businesses.
“What we are looking to do is provide capital and credit to companies that are established and have grown and reached their potential as much as they can without access to traditional capital markets,” said Michael Safir, managing director of the new fund and former business manager of High Times.
Investments are expected to be from $2 million to $5 million per company.
Safir said the fund is looking to make investments in”best of breed” businesses with strong management teams. Although it will consider marijuana cultivation and retailers, the fund’s focus will be primarily on ancillary businesses.
“If you are running a cannabis business, you aren’t getting (a Small Business Administration) loan, you don’t have bank accounts,” Safir said. “It is hard to grow when you don’t have the tools.”
Though a separate entity from High Times, the fund will use the expertise the company has built up over the years to pick investments and advise management teams on strategy. Other than the investments targeted, HT Growth will operate like a traditional private-equity fund, Safir said…
[continues at the Los Angeles Daily News]