Cresco Capital Partners Closes Oversubscribed $60M Cannabis Fund

Private equity firm Cresco Capital Partners announced Thursday that it closed a $60-million oversubscribed cannabis fund, the CCP Fund II.

What Happened 

Cresco surpassed its $50-million goal for the fund, Matthew Hawkins, Cresco's managing principal, said in a statement. 

“With the overwhelming success of CCP Fund II, we are preparing to begin marketing a third fund in which we hope to raise $200 million. This fund will continue to target investments in value-add opportunities in the legalized cannabis space both plant touching and non-plant touching.”

Cresco said it's raised more than $85 million in its two funds and a series of co-investments since kicking off in 2014. 

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Why It's Important 

The private equity firm said it's deployed about $22 million from Fund II to date to 15 companies along the cannabis supply chain ranging from genetics to retail branding. 

The portfolio includes companies such as Harborside/FLRish Inc., MJ Freeway, PROHBTD, NorCal Cannabis Company, Sunderstorm, Phylos Biosciences, Sublime and Cellibre, according to Cresco; to find more coverage on these companies, click here.

The firm said it's achieved seven exits across its two funds with companies such as Acreage Holdings Inc (OTC:ACRGF), Green Thumb Industries Inc (OTC:GTBIF), Ebbu and Form Factory. 

What’s Next 

Cresco said Thursday that it's preparing to launch a third fund in which it hopes to raise $200 million. 

"This fund will continue to target investments in value-add opportunities in the legalized cannabis space both plant touching and non-plant touching," Hawkins said. 

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