New York-based Silver Spike Capital aims to raise $500 million to $1 billion for a direct lending fund during the fourth quarter and subsequently a private equity fund of the same size, Bloomberg News reported, citing founder and CEO Scott Gordon.
The new multi-product investment manager, which focuses on the cannabis sector, aims to enter the direct lending and private equity markets amid the recent declines in pot stocks.
Silver Spike, which debuted Silver Spike Acquisition Corp. on the Nasdaq in August, is also planning to raise roughly $200 million for a hedge fund. Silver Spike Acquisition is a $250 million special purpose investment vehicle that seeks to buy a cannabis-related business or businesses over an 18-month period.
Silver Spike plans to adopt a global investment strategy and to eventually open offices in Europe, Asia and Latin America, according to the report. It will seek to diversify from the recreational marijuana market to applications for food, beverages, cosmetics, sleep, pain and anxiety.
Gordon is a former investment banker at JPMorgan Chase & Co., according to Bloomberg.
