Pelorus Capital’s New Equity Fund: A Billion Dollar Bet?
Pelorus Capital Group is making a billion dollar bet on cannabis. After years of building a reputation as one of the most disciplined lenders in cannabis real estate, with more than half a billion deployed since 2016, the firm is now launching a $1 billion equity growth fund. The move marks a significant shift from debt into ownership, and the timing could reveal how Pelorus sees the next phase of this maturing industry. TDR Trade to Black, powered by Dutchie, sits down with Rob Sechrist, President of Pelorus Capital Group, to unpack the details.
Co-founder Rob Seacrest explains how the firm is leveraging years of lending experience to take on equity positions in distressed but promising operators. Pelorus Capital Group has invested over half a billion dollars in cannabis real estate since 2016, learning key lessons across both unlimited and limited license states. He says those insights—ranging from the adoption of LED lighting and automated trimming systems to financial strategies for navigating inflation and supply shortages—allow Pelorus to identify “good companies with bad balance sheets.” In such cases, the firm has stepped in to restructure debt, guide operational improvements, and in some situations, assume control of struggling facilities.
One of the most notable examples is StateHouse Holdings in California, which entered receivership losing $1.3 million per month. Pelorus installed an interim CEO, implemented efficiencies, and reversed its trajectory to generate $1 million in monthly profit, finishing last year with $106 million in revenue. Seacrest says this case now serves as a strategic hub for Pelorus’ equity fund, proving that vertical integration can succeed even in California’s fiercely competitive, unlimited license market.
The new fund is designed to acquire complementary operations across the country, starting with California and Michigan. Seacrest stresses that vertical integration and scale are essential to surviving compressed margins, noting that owning dispensaries provides both cost savings and the ability to capture higher margins on in-house products.
Pelorus is also leaning on extensive data, tracking more than 21,000 businesses and 31,000 licenses nationwide since 2020. This dataset allows the firm to benchmark performance and quickly assess whether an operator is outperforming or underperforming industry averages.
To guide execution, Pelorus has assembled an advisory team including Cresco co-founder Joe Caltabiano, investor Charlie Jackson, and former KKR executive Kyle Detweiler. Seacrest concludes that while regulatory reform and rescheduling remain uncertain, distressed assets will continue to surface—and with its infrastructure in place, Pelorus aims to turn those challenges into long-term enterprise value.
