Investments

We manage affiliated direct lending funds focused on delivering consistent cash income, low volatility, and liquidity.

Our Investment Philosophy

Our Investment Philosophy

We emphasize fundamental credit analysis and downside protection in a disciplined investment process.

Preservation of Capital

Preservation of Capital

  • Seek above market returns without endangering the preservation of capital
  • Focus primarily on downside scenarios prevention, identification, and exit
Market Inefficiencies

Market Inefficiencies

  • Identify opportunities in less crowded markets, providing for additional return relative to risk
  • Be willing to invest and lend in market niches where others are retreating
Specialization

Specialization

  • Utilize expertise of creative, diligent structuring
  • Rely on institutional knowledge of regulatory barriers to invest where others are absent with a focus on risk control
A Focus on Process

A Focus on Process

  • Emphasize consistency and transparency as a core tenet of Chicago Atlantic’s investment process
  • Build processes to allow for scaling while maintaining quality
Innovation

Innovation

  • Use modern approaches across the investment process, e.g. digital marketing to support origination and technology to enhance underwriting and portfolio management

Sample Strategy

Chicago Atlantic’s senior secured cannabis debt investment strategy reflects the firm’s focus on niche opportunities where risk is mispriced.

Cannabis-related borrowers pay a premium for debt capital because traditional lenders are absent due to federal regulation. Yet the market is experiencing continuous YOY growth and there exist ample opportunities for prudently deploying capital.

Learn More

Senior Secured Cannabis Debt

  • Limited banking competition
  • Oligopolies in limited-license states
  • Secular growth and credit cycle resiliency
  • Above market returns and equity kickers
  • Portfolio diversification
  • Strong collateral positions
  • Proven commercial underwriting

$500MM

CURRENT ORIGINATION PIPEINE