Cannabis Investment Funds

Establishing and structuring investment products in general is a fairly complex process.  However, various aspects have been streamlined significantly over the past decade and comprehensive solutions allow the investment management team to work with operational and formation specialists who provide various services and who quarterback the entire launch process, versus the investment management team retaining numerous service providers and subsequently having to manage this complex process themselves.

The process includes evaluating and advising on fund structure, formulating the appropriate offering documents, structuring the fund companies and the investment management company, as well as drafting the private placement memorandum (PPM), the limited partnership agreement (LPA) and operating agreements. The offering documents should include a private placement memorandum (PPM), or offering memorandum, which contains the terms and conditions of the investment offering, along with a discussion of risks and other important factors. The PPM is typically provided to prospective investors. Although there is no requirement, legal or otherwise, for an investment manager to retain an attorney to write the fund’s formation and offering documents, it is advisable for legal counsel to review the offering documents to confirm that the fund is compliant with relevant securities laws and not exposed to undue risks.