In this episode of The Legal Lunch Byte we have an insightful discussion on cannabis financing with Eduardo Diaz Rivera, founder of Alta Fund based in Mexico City. Join us as we unravel his journey into the world of cannabis finance and Alta Fund’s unique approach.
Introduction to Cannabis Financing
Eduardo Diaz Rivera, with a background in economics and extensive experience in investment banking, particularly in structured credit, shares his journey into the cannabis industry. He highlights the appeal of this burgeoning sector driven by the dynamics of supply and demand within a regulated framework, primarily focusing on the US market.
 Alta Fund’s Approach
Alta Fund distinguishes itself by providing capital through real estate to regulated cannabis operators across the United States. This strategic approach ensures investment security by leveraging real estate assets while avoiding direct operational involvement in the cannabis business.
State Insights and Investments
Starting with California, Eduardo discusses Alta Fund’s initial forays into the cannabis real estate market, emphasizing their strategy of adapting to regulatory landscapes in various states.  Alta Fund has expanded its portfolio to include investments in Maine, Washington, Connecticut, Ohio, Pennsylvania, Michigan, and Colorado, carefully selecting states based on rigorous regulatory due diligence.
Cannabis Market Dynamics and Challenges
Eduardo sheds light on the evolving dynamics within each state’s cannabis market, noting common challenges such as initial high prices, market consolidation, and the persistent influence of the black market. He underscores the importance of proactive planning and solid capital structures for long-term sustainability amidst fluctuating regulatory environments.
Future Outlook and Industry Trends
Looking ahead, Eduardo shares insights into Alta Fund’s future plans, including the launch of Fund Two, echoing their commitment to supporting robust cannabis operators with sustainable growth strategies. He discusses anticipated regulatory changes, potential federal reforms, and the industry’s resilience despite ongoing political complexities.
Closing Thoughts
In conclusion, Eduardo reaffirms Alta Fund’s dedication to partnering with cannabis operators who exhibit strong business fundamentals and a clear vision for growth. He emphasizes the importance of understanding regulatory nuances and maintaining a resilient capital base to navigate the challenges and opportunities within the dynamic cannabis industry.

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