Record Raise: Tuatara Lands $93M for Investments in Marijuana Businesses

marijuana money

By Omar Sacirbey

A New York-based private equity firm has raised $93 million to pump into cannabis companies, giving it the largest pool of capital ever gathered for marijuana-related investments.

Tuatara Capital, founded in 2014, announced today that it has closed out its two funds and will use the capital to make equity investments in high-growth cannabis companies in the research & testing, cultivation, processing, consumer and retail sub-sectors.

Tuatara said its original fund target was $80 million, meaning the firm surpassed its goal by about 16%.

The amount is significantly larger than the $75 million raised by cannabis-focused private equity firm Privateer Holdings early last year.

“We are humbled by the enthusiastic support of our limited partners, many of whom are close friends and long-time business associates,” Mark Zittman, chairman and founding partner of Tuatara, said in a statement.

Al Foreman, the firm’s chief investment officer, told Marijuana Business Daily that individuals accounted for the bulk of the investors.

He also said some “quasi” institutions ponied up money, describing these as “professional organizations who are managing capital on behalf of large family and other professional investors.”

Tuatara aims to target approximately 10-15 marijuana businesses for investment, company executives said. The company plans to invest the $93 million over the next two to four years.

Check back later for more details and an analysis of what it means for the industry