Cannabis Fund Turns to Distressed Debt Amid Sector Slump
- Altitude Investment Management is launching a second fund
- Firm seeks to participate in origination of new senior debt
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The partners at cannabis-focused Altitude Investment Management didn’t imagine that their decades of experience in distressed debt would apply to the rapidly growing pot industry, yet it’s become a key focus as they raise capital for their second fund.
Three of Altitude’s four principals came from Longacre Fund Management, a distressed-debt investor that wound down its main funds in 2011. Now they’re looking for high-yield pot debt as the industry struggles with a months-long share slump, unreceptive capital markets and a growing cash crunch.