Los Angeles-based Ello Capital plans “one-stop” shopping as a marijuana-focused investment bank serving cannabis companies in the United States.
The company said it is filling a need for an underserved clientele with few, if any, other cannabis-focused investment banks currently operating in the U.S.
It’s more common for investment banking firms, such as U.S.-based Cowen and Seaport Global, to serve cannabis companies in addition to other mainstream businesses.
Ello, with an office in New York City in addition to Los Angeles, employs 17. The firm plans to help cannabis firms raise capital and also handles mergers and acquisitions, among other things.
“They are going to need support with transactions and capital formation as consolidation heats up.”
He added: “The industry is a long way from being mature and early entrants still have a very viable path forward.”
Ello’s CEO and managing director, Hershel Gerson, said the firm will help clients understand the nuances of the U.S. industry, particularly on matters of compliance with state laws.
“We are a one-stop shop,” said Gerson, who closed more than $30 billion in deals during 20 years as an investment banker.
Before joining Ello Capital, Gerson led Macquarie Capital’s consumer-coverage efforts focused on the food and beverage and restaurant sectors.
Macquarie Capital is the corporate advisory, capital markets and principal investment arm of Macquarie Group, an Australian-based global provider of banking, financial, advisory, investment and funds management services.
Nick Thomas can be reached at [email protected]