Gregory Silberman: How smart capital is making money with Cannabis without growing it

Gregory Silberman – a former Director of Alternative Investments at Wilmington Trust responsible for managing over $2bn in private equity, hedge fund and real assets – and his team have spent more than 3 years assessing the cannabis landscape and successfully closed their first fund. Given the significant deal flow and investor interest he is raising a second fund, but rather than chasing trendy brands or opportunities he is focusing on well-run companies supporting growing cannabis businesses in large target markets throughout the supply ecosystem that have already defined their revenue pipelines and can expand those sales channels with little operational friction.

Cannabis is one of the few new industries in the developed world. Estimates in its size vary greatly, but a consensus has coalesced around all cannabis related businesses amounting to a $80B industry by 2022. Silberman believes this understates the opportunity significantly, particularly in light of the increasing rate of states adopting both medical or adult-use laws. With recent election results and the passage of several ballot initiatives, cannabis is legal in some form in 30 states and the District of Columbia. More than 25% of the U.S. population lives in adult-use states while 75% lives in states where medical or other forms of cannabis usage is legal. Legalisation of Cannabis is real trend gaining momentum.

Silberman believes that “we are extremely early in the cycle versus where it can go”, however he does not invest in public stocks but focuses on opportunities in the private markets which, despite the hype, are starved of capital and offer the experienced and discerning investor a rich opportunity set. At this point, private capital has a front seat in the Cannabis revolution before the “big boys” are able to enter the sector. Silberman also predicts that the pendulum will swing from prohibition to government sponsored distribution programs.

In this Opalesque.TV BACKSTAGE video, Greg also speaks about:

• How fragmented regulation creates investment opportunities
• Why G&R Capital Partners is not focusing on growing Cannabis
• The evolution of MSOs - Multi State Operators. Rolling up individual state licenses to form conglomerates
• The Branding JV Opportunity. CBD versus THC. Technology & arbitrage opportunities
• Who are the current players and investors in the Cannabis industry?

Greg Silberman is Chief Investment Officer of G&R Partners and responsible for managing the firm’s Cannabis investment activities.

Prior to joining G&R, Greg served as Director of Alternative Investments at Wilmington Trust, where he was responsible for managing more than $2bn in private equity, hedge fund and real assets and was instrumental in the launch of a successful alternative mutual fund. He was also involved in the management of more than $80 billion as a member of the research team. He has worked as a portfolio manager, analyst and product developer for Perpetual Investments in Sydney, Australia and JP Morgan Chase in London, England with a focus on structured derivative products.

A South African qualified Chartered Accountant, Greg is also a Chartered Financial Analyst (CFA) charterholder and a Chartered Alternative Investment Analyst (CAIA). He also serves on the Jewish Federation of Greater Atlanta’s investment committee.
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Gregory Silberman – a former Director of Alternative Investments at Wilmington Trust responsible for managing over $2bn in private equity, hedge fund and real assets – and his team have spent more than 3 years assessing the cannabis landscape and successfully closed ...more