Altmore Capital addresses massive demand for funding in the cannabis industry
New fund exceeds goals by 200%, available to plant-touching businesses beyond the “start-up” phase for potential investment
Altmore Capital, a leading senior debt lender, today announced that it has closed its first cannabis debt fund exceeding its goal by over 200 percent. The new fund is available to plant-touching businesses with more than $10 million in revenue. To date, Altmore Capital has invested in and led over $130 million in financing in the cannabis industry and expects to complete an additional $200 million to $300 million in the next year.
“Due to federal laws and limited debt financing options, the cannabis industry and especially plant-touching businesses, is starved for capital. We launched our new fund to provide transformational capital for a large number of cannabis companies that are evolving into strong cashflow operations,” said Rob Shuler, Co-Managing Partner at Altmore Capital. “The industry expects tremendous growth over the next ten years, but it has had few funding options. We plan to help facilitate the growth and expansion of the industry with this new capital.”
Altmore is a senior secured debt lender to the cannabis industry loaning $5-100 million to successful operators in the U.S. The firm’s current borrowers are both single state operators and large multi-state operators (MSOs). Altmore’s cannabis fund is structured for investments in plant-touching businesses that include cultivators, manufacturers and retailers in the cannabis space. The firm looks for strategic and trusted management teams with the ability to execute strategy, and those that have ample collateral on an ongoing basis.
“We know that well-positioned cannabis companies have the opportunity to solidify and grow in their market position. In addition to organic growth, cannabis companies are aggressively buying competitors which is driving industry consolidation,” Shuler added. “More than half of Altmore’s $300 million backlog comprises buyers funding acquisitions.”
Altmore Capital’s partners have over 70 years of combined high-level investor experience and have been active in the cannabis industry for over four years. The Altmore team is recognized for their experience and passion for helping transform small to medium sized businesses through their partnership and capital. The company takes a hands-on approach to supporting their investments beyond capital, building networks, creating partnerships and expanding business development opportunities.
“We understand and appreciate the unique business and legal complexities of cultivation, manufacturing, retail and other aspects of the cannabis industry which is what sets us apart from others in this space,” said Shuler. “We share the same passion for the benefits of the plant as the trimmers, budtenders and CEOs in the companies in which we invest and wake up every morning excited to work in an industry that we love.”
For more information about Altmore Capital’s cannabis fund, please contact info@altmorecapital.com.
About Altmore Capital
Founded in 2018 by Steve Ham and Patrick Kim, Altmore Capital based in Tysons, Virginia is a specialty finance firm that invests in the U.S. cannabis industry, primarily through senior secured term loans. Altmore’s management team has substantial industry experience, and comes from leading private equity, management consulting, legal and debt finance firms. Altmore has developed, as lead lender, proprietary and industry-specific investment screening, due diligence, and structuring processes. The firm has provided over $140 million in capital to cannabis companies headquartered throughout the U.S. Altmore focuses on companies that are beyond the “start-up” phase with more than $10 million in revenue.
