Cannabis Focused Private Credit : Chicago Atlantic

A cannabis focused private credit strategy seeking attractive risk-adjusted returns while focusing on capital preservation and consistent income generation. The strategy predominantly invests in senior-secured loans to middle market companies in the cannabis industry.

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PREFERRED RETURN

%

ANNUAL CASH DISTRIBUTIONS

%+

SENIOR SECURED

AVERAGE LOAN DURATION (MONTHS)

Offshore and Onshore Vehicles

The Cannabis Investment Opportunity

We pursue niche markets overlooked by traditional capital sources—where inefficiencies, limited funding, and mispriced risk create outsized potential. The cannabis space offers structural advantages, emerging regulatory shifts, and constrained competition that can drive strong, uncorrelated, risk-adjusted returns.

LACK OF TRADITIONAL FINANCING
Banks generally don’t lend to firms in this industry, allowing higher interest rates, attractive collateral, and lender-friendly covenants.
HIGH BARRIERS TO ENTRY
Each state has unique investment characteristics, supply and demand dynamics, and legal frameworks, requiring sophisticated understanding of the industry and strong underwriting expertise.
LOW CORRELATIONS TO TRADITIONAL MARKETS
Medical cannabis behaves like pharmaceuticals, recreational cannabis behaves like tobacco and alcohol, both exhibiting low correlation with traditional markets.
FOCUS ON LIMITED LICENSE STATES
Limited license states have limited competition, lucrative license values, high wholesale prices, and less black market presence.
NEAR TERM CATALYSTS
Potential scheduling of cannabis from a schedule 1 to a schedule 3 substance would decrease the tax burden of cannabis operators, improve profitability, and create greater access to capital.

The Cannabis Landscape in the U.S is Evolving

Legal in 35 states and the District of Columbia¹

Medical use only: 25 states
Recreational/Medical use: 10 states & District of Columbia

Legal in 42 states and the District of Columbia¹

Medical use only: 18 states
Recreational/Medical use: 24 states & District of Columbia

¹ MJ Biz Factbook Q1 2025

Our Differentiators

Deep Expertise

Seasoned team with deep and diverse investment experience in credit and structured products specifically within the cannabis industry.

Deal Selection, Underwriting & Due Diligence

Leads to high quality borrowers, avoiding risky start-up or construction loans and favoring low leverage deals.

Downside Protection

The fund focuses on senior secured lending, tight covenants, and attractive collateral packages, prioritizing limited license states and cash-flowing operators.