The following strategy is being employed for Fund I, which is now fully subscribed. To learn more about Fund II, please contact us.
Poseidon employs a diversified investment approach that seeks to produce superior risk-adjusted returns over the long run by spotting early opportunities for outsized returns and allocating capital to the highest-quality cannabis companies.
Capitalizing on Disruptive Change
Consistently investing in the leading edge of innovation across diversified cannabis and hemp sectors
- An early leader in cannabis venture capital, with a focused team committed to helping great entrepreneurs create big successes
- Finding the best positioned companies in a rapidly evolving frontier projected to exceed $15 billion in revenue by 2020
Investments cover a broad range of sectors and deal structures, providing a cohesive portfolio of cannabis opportunities
- Targeting the efficient frontier of cannabis alpha through diverse return sources for optimal risk-reward
Extraordinarily Robust Research
- Exhaustively researched capital commitments with ongoing operational and business support to portfolio companies
- Insightful and visionary investments in teams with the apparent ability to drive innovation, brand effectively, and achieve profits
- Seeing what others don’t and connecting the dots between qualitative and quantitative assessment criteria
Poseidon believes that successful portfolio management involves having access to high-growth market segments and best-in-class entrepreneurs who are empowered to catalyze winning outcomes and generate long term attractive growth.
There are three key principals of Poseidon’s philosophy:
I. Opportunities for investor growth are significant as innovative products and entirely new categories emerge in the legal cannabis industry.
The size of the market opportunity for cannabis is a key driver to generating consistent and superior portfolio results.
The rapidly expanding market supports products and services across numerous verticals, including companies that are providers of necessary technology, logistics and equipment for the industry--not just the industry’s end products.
Disruptive change is occurring in the industry with supportive laws, legitimate research and widespread existing and newly emerging demand.
II. Strategic and functional expertise matters in emerging industries like cannabis, requiring significant time investment, dedication, and proficiency.
Conducting objective, rigorous, and thoughtful due-diligence is a critical component to generating attractive returns.
Partnering with each management team to implement clear strategic and operating plans helps portfolio companies achieve their business goals.
Poseidon is committed to excellence across its selection process where portfolio companies are carefully curated based on entrepreneurial strength and the magnitude of the opportunity, taking an active role in branding and strategic initiatives.
III. Risk management is paramount to successful private equity investing.
The fund strategy of broad industry diversification is designed to allow for access to a range of companies for maximized growth while limiting risk.
The most critical risk analysis occurs before the investment decision, requiring an in-depth understanding and identification of risks to which the investment may be exposed.
Effective risk management policies and procedures must be in place to identify, measure, manage, and monitor ongoing risk.