Strategic Ancillary Cannabis Investing
The Arcadian Fund is a professionally managed vehicle capitalizing upon the non-touch, ancillary cannabis industry growth.
After graduating the University of Texas within four years with two separate degrees in 2005, Mr. Nordgren went on to found and manage the energy conservation company NORDCO Inc.. There he gained his experience and passion in private equity. Mr. Nordgren currently has holdings in twenty companies, and has completed transactions totaling over $7 billion.
Mr. Holzworth began his career at Merrill Lynch, later founding his own financial advisory firm. Getting involved in the cannabis industry in 2012, Mr. Holzworth served as the Chief Investment Officer of BIOTRACKTHC, where he tracked over $1.4 billion of legal cannabis transactions. He is currently the President of the Cannabis Lab - Law, Accounting & Business.
He was the founding investor in Banc of California, CS Financial, COR Clearing, Valor Group Offshore Insurance Company, Camden Capital Partner and was the President of MKA Capital Advisors. He serves on the boards of a number of private and public companies and has invested in professional sports teams including Los Angeles Football Club and Oklahoma City Dodgers.
Cannabis-related companies raised more than $734 million between January 1st and April 21st, 2017. Resulting in a 7X increase from the $108 million raised in the same period last year according to Arcview.
There are many advantages that the ancillary sector has, such as it avoids regulatory hurdles, it enables Inter-State Commerce, and it allows brand expansion.
The ancillary cannabis market grew 161.2% in 2016. Consulting increased 737%, investment / M&A up 366%, and consumption devices increased 116%.
The introduction of Adult Use in CO and WA have resulted in a 70% year over year compounded growth rate.
Market and industry insiders are forecasting the national legal demand for cannabis to increase to $22 Billion by 2020.
Arcadian and partners predict a 3-5 times multiple expansion into ancillary revenue. This would result in the California ancillary market alone increasing to a minimum of $36 billion by 2018.