The cannabis industry has long been compared to alcohol, gambling, Chinese herbal medicine and the internet boom.
While there are parallels one can draw to each of these industries, many factors make the cannabis industry unique to its constituents – which include ~14,000 licensed businesses, nearly twice as many unlicensed or ancillary businesses, and hundreds of thousands of employees, consumers and investors.
An industry with ~40,000 businesses and over 240,000 employees has witnessed the lion’s share of capital and media attention going to the fewer than 400 public companies, leaving over 99% of the industry to innovate, compete and grow despite a plethora of capital and marketing restrictions.
There are many companies that have sensible, sustainable and scalable business models. These collectively represent the cannabis private equity opportunity.
We continue to believe that cannabis will be the best performing asset class over the next decade, and that there will be no sector untouched by this plant in the years ahead.
There is a growing list of reasons to be bullish on the cannabis sector.
The recent and ongoing shutdown has caused significant spikes in anxiety and insomnia. People are increasingly and justifiably concerned for their jobs, income and future.
In an environment where the words opioid and crisis are almost universally used together, cannabis has risen on the list of excellent ways to deal with stress and sleep issues.
Caution: Side effects may include increased appetite and enhanced enjoyment of movies and music.
Two in three Americans support legalizing cannabis for adult use, and national support has shown record-breaking growth for the past three consecutive years.
On the medical side, support is even stronger. More than 90% of Americans are in favor of legalizing medical cannabis.