Structured Credit for the U.S. Cannabis Lower Middle Market
Asset-Backed and Revenue-Based Financing for Underserved Cannabis Operators
Strategy Overview
targets $750K–$2M financings for established cannabis operators generating approximately $750K–$10M in annual revenue.
Typical Investment Parameters
- Financing Size: $750K–$10M
- Target Borrowers: Cannabis operators with $750K–$10M in annual revenue
- Investment Duration: 18–24 months
- Structures: Asset-backed and revenue-based financings
- Target Economics: 12–18% annualized yield, plus potential equity participation
Typical Investment
We start with one question: "How do we get repaid?"
Typical Investment
$1M–$1.5M investment into cannabis operators generating $2M–$5M in revenue, structured for repayment over ~24 months with equity participation.
Investment Parameters
- Investment Size: $750K–$10M
- Revenue: $750K–$10M
- Duration: 18–24 months
- Structure: Asset-backed and revenue-based financing
- Return Profile: 12–18% annual yield + equity participation
Not Eligible Under This Strategy
- Pre-revenue companies
- Transactions under $750K
- Equity-only financing transactions
- No clear path to repayment
What APVC Does
Structured Capital Built for Real Operators
We provide:
- Asset-backed loans
- Revenue-based financing
- Structured capital solutions
Designed for cannabis operators who:
- Have real revenue
- Need flexible, non-dilutive capital
- Are underserved by traditional lenders
APVC Operates Where Institutional Capital Doesn't
Most lenders avoid smaller cannabis businesses due to:
Regulatory complexity
Lack of scale
Operational inconsistency
We operate in that gap—providing capital where:
Banks won’t lend
Private credit won’t engage
Equity is to expensive
