London Daily

Focus on the big picture.
Wednesday, Jul 09, 2025

London-based manager aims to raise Europe’s biggest cannabis fund

London-based manager aims to raise Europe’s biggest cannabis fund

Chrystal Capital hopes to profit from legalisation moves even though shares in sector have struggled
Europe’s small market for investing in cannabis is showing signs of life, with a London-based investment firm focused on wealthy individuals hoping to raise the region’s biggest dedicated fund.

North America dominates cannabis investment, with 12 out of 14 cannabis-focused exchange traded funds globally listed there, according to data group ETFGI. Returns have often been poor.

But Chrystal Capital Partners believes a growing wave of legislation will boost the popularity of cannabis investment, and its potential returns. It is hoping to raise an initial $100m for the Verdite Capital Fund, an actively managed fund launched on Monday, before growing it to $200m through a later fundraising.

“We think this will be a highly regulated industry in 10 years’ time,” said Kingsley Wilson, an investment partner at the firm, acknowledging that regulatory risk had deterred many private equity and institutional investors from the sector. “Regulation and funding will underpin the market transition and how it moves from an illegal to a legal market.”

Chrystal’s strategy will focus on medical marijuana, cannabis-derived drugs and so-called CBD — a cannabinoid that does not make users feel high. About half of its assets will be invested in North America and at least 35 per cent in Europe. It will avoid companies supplying marijuana for recreational use, Chrystal said.

Big fund managers generally steer clear of cannabis investments. In a June research note, investment bank Jefferies said institutions accounted for only about 5 per cent of the ownership of cannabis companies, compared with about 50 per cent for the technology sector.

The fundraising from Chrystal, which caters to investors including ultra-high net worth individuals and family offices, would make its portfolio the biggest in the cannabis sector outside of North America. The market is dominated by investment firms such as Privateer Holdings, Gotham Green and Merida Capital Partners, as well as listed vehicles including the $510m ETFMG Alternative Harvest fund and the $250m Horizons Marijuana Life Sciences fund.

Performance has been patchy. Last year, the shares of North American cannabis companies plummeted after it proved tricky to lure customers away from illegal markets and the pace of legalisation in the US did not keep up with expectations. The Horizons fund fell 39 per cent last year and a further 31 per cent this year.

Chrystal’s fund, which is regulated in Guernsey, will invest in 10 to 12 companies globally, across equities, bonds and convertible bonds, a type of hybrid debt.

Demand for cannabis stands at about $344bn globally, and the vast majority is still traded illegally, according to a report last year by Washington-based research group New Frontier Data.

Nevertheless, many investors are betting on federal legalisation of cannabis in the US within the next few years. More than 10 states have already made it legal for adults to smoke cannabis without medical prescription.

Medical cannabis, which is only now being tested in clinical trials, is already being prescribed in several countries to help treat various ailments such as epilepsy, anxiety and pain. That includes the UK, where medical cannabis was legalised two years ago.

The UK financial regulator issued new guidelines last week for companies seeking to list on the London stock market, opening the door to those providing products for medical use.
Newsletter

Related Articles

0:00
0:00
Close
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×