Entourage Effect Capital, formerly known as Cresco Capital Partners, a private equity firm focused on the legal cannabis sector, is seeking to raise $150 million for its third fund. The fund is expected to invest in about 10 to 20 growth stage companies.
NEW YORK, Oct. 3, 2019 /PRNewswire/ — Cresco Capital Partners, a private equity investment firm focused solely on making strategic investments in the legal cannabis market, announced the launch of its Fund III with an initial target of $150 million, representing its largest fund to date. This is the third consecutive fund launched by the firm and when fully subscribed, will bring total assets under management to approximately $250 million.
In tandem with the new fund launch the firm has officially changed its name to Entourage Effect Capital (“EEC”). The new name reflects the evolution of both the cannabis industry and the firm’s investment strategy. Like the industry itself, Entourage Effect Capital’s venture funds began as small, local investments and have now grown into a broad, expansive strategy with untold growth potential. EEC chose this name for their brand because they are distinguished by their extremely active role in adding value to their portfolio companies. EEC is a tribute to the cannabis term “Entourage Effect,” which means that the compounds within the cannabis plant work in concert to create a sum that is greater than its individual parts. This metaphor defines EEC’s value proposition as a firm.
Fund III will target a diversified investment approach across the value chain including, but not limited to, science and bioscience, license aggregators, vertically integrated licensed operators and retailers as well as consumer packaged goods, biotech, ag-tech, media, technology and ancillary services.
“We bring this comprehensive approach to our investing strategy: we do not wait for success to come to our portfolio companies; we work to orchestrate it,” said Matt Hawkins, Managing Principal of Entourage Effect Capital. “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. With the success of our two previous oversubscribed funds, our new Fund III embodies our approach to investing in the burgeoning cannabis industry.”
Fund III is expected to invest directly in approximately [10 – 20] growth stage companies within target sectors over a five-year investment period and seven-year fund term. Since inception in 2014, the firm currently manages approximately $100 million in assets under management. The firm includes three managing partners Matt Hawkins, Andy Sturner, Dov Szapiro, two managing directors / partners Codie Sanchez and Tiffany Liff, as well as VPs and associates Matthew Bryant and Ellen Roy. We represent a team of investing professionals with experience from leading banks such as Goldman Sachs and JP Morgan, and graduates from Georgetown and Wharton, collective experience of 100+ years in investing and startups, and a storied history in starting and exiting more than 19 companies between us. We are thrilled to combine these skills for all our investors.
As investment highlights, EEC has invested in 32 companies with a total of 11 exits. Both prior funds consist of current and exited positions in some of the most recognizable names in the cannabis market including Acreage Holdings, GTI, MJ Freeway, Ebbu, Form Factory, and more.
About Entourage Effect Capital
Entourage Effect Capital, formerly Cresco Capital Partners, is a US private equity investment firm, dedicated to investing in the cannabis industry. Founded in 2014, the Firm has approximately $100 million in assets under management and is focused on deploying capital in strategic geographies and sectors within the cannabis space. For more information please visit www.entourageeffectcapital.com.