Regennabis Ventures, established by Kellie Seringer, Founder of Symmetry Capital Management, and Patrick McCartan and Geoff Trotter, Co-Founders of Regennabis, have announced its inaugural Private Equity Impact Investment Fund, seeking to raise an initial $30 million to invest in start-up companies in the Cannabis and Hemp Industries.
Positioning itself as the first ‘Venture Multi Capital’ firm, Regennabis Ventures fund will ensure an ESG-screen is used in the investment decision-making diligence process as well as delivering Regennabis’ proprietary ‘ESG Accelerator’ into each of the portfolio companies.
The timing is optimal for impact investment in the cannabis sector as it moves from illicit sales to “legal regulation” to sound company governance. Federal legalization in the United States will further filter-out the poor performers with an enhanced focus on Sustainability as the SEC looks to drive ESG disclosures in corporate filings. Regennabis Ventures sees a disciplined approach to risk management and ESG practices as a critical driver in creating healthy companies.
“At Regennabis Ventures, we believe democratizing the opportunity for ‘Regenerative Growth for ALL’ – for and by the Cannabis & Hemp Industry – is front and center of the work we are undertaking with organizations in this exciting, somewhat nascent sector,” said Seringer. “With the UN Sustainable Development Goals (SDGs) serving as our overarching framework – and with a laser-focus on Environmental, Social & Governance issues – we believe purpose-led players in this industry are well-placed to help solve some of the biggest challenges facing humanity in this ‘Decade of Action’.”
“The Cannabis and Hemp Industry is uniquely positioned to impact the 17 SDGs. Through our work with the Regennabis Member Network, we have access to companies in their early stages of development, which, coupled with our focus on economic, governance, social & environmental factors will drive an improvement in the company’s overall value,” Trotter said.
“With an ever-increasing number of private companies in the rapidly evolving Cannabis Industry, a thorough understanding – and implementation – of ESG Frameworks will be needed to navigate the risks and opportunities inherent in environmental, social and governance issues. Beyond industry-agnostic issues (e.g. transparency and disclosure, climate change management and board governance, etc.), there are a multitude of specific ESG risks the cannabis industry cannot ignore,” McCartan said.