Co-investing in the Cannabis industry: Are the returns worth it?

Real opportunities are yet to come with the cannabis industry.

Cannabis has been part of the United States economy since George Washington supported industrial hemp to make rope and sail canvas in 1765. Over the years, regulations for the production of cannabis have been changed several times because of the legalization of medical and recreational cannabis, aiming to revamp poison laws.

Today, cannabis is among the fastest-growing industries in the United States and the world, creating the potential for outsized returns for cannabis investments, even when the legal burdens remain due to advancements.

There are many different ways of investing in the cannabis industry, as well as stocks, ETFs, etc. but let’s talk about the trending investing mode, which is also on the rise: CO-INVESTMENT.

Co-investing offers sophisticated and high net-worth investors the opportunity to earn greater exposure to attractive assets at lower fees, thus cramming out fatter returns and especially deployed in a diversified venture group.

Key facts of co-investment:
– Offers the ability to deploy capital at a faster rate.
– Allows a better understanding of the sourcing capability and operational skills.
– Provides enhanced primary fund intelligence.
– Outperform traditional direct funds.
– Focus on companies with good fundamentals and don’t attempt to time.
– Scope out the potential for creating fundamental value is key to achieving the returns that make private equity attractive.

We can say today that the evolution of the cannabis industry has seen demand for co-investment capital gain major momentum, while a diversified cannabis venture group approach provides for multiple segments within a large industry to be served.

At this point, the key is to adhere to an investment discipline and exercise caution on price and leverage. But if we are talking about co-investing in market-leading companies operating in the cannabis industry through the Americas we can talk deeply about B-HIVE Biz expertise.

Investors considering investing in the cannabis industry may choose the most suitable company for advice and returns. Every decision and cent should be put on the table to make decisions.

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