Fund Formation & Alternative Investments

As a firm that specializes in the cannabis and hemp industries, Vicente Sederberg LLP is uniquely positioned to provide sophisticated market intelligence and cutting-edge legal solutions to sponsors, investors and other participants in alternative investment funds.

We have extensive knowledge of the cannabis space, and several of our attorneys have experience with complex fund transactions while at international law firms, allowing VS to provide exceptional corporate counsel to sponsors forming small venture capital or hedge funds and other alternative investment structures, including funds formed for specific investments. For investors, we offer corporate and regulatory reviews of the terms of open-end and closed-end investment funds, whether such funds are directly or indirectly engaged in hemp or cannabis activities. We also provide corporate and regulatory counsel with respect to downstream transactions, exits, and secondary transactions. Our specialized experience also allows us to provide a distinctive service to other law firms and fund sponsors in need of cannabis or hemp regulatory counsel.

Our corporate practice includes more than 20 attorneys based in California, Colorado, Florida, Massachusetts, New Jersey, and New York, where they are deeply involved in cannabis regulatory work across all of the major medical and recreational cannabis state markets. This on-the-ground experience allows VS to help clients implement customized, practical strategies in the investment fund space.

LEADERSHIP

Services

  • Corporate counsel of sponsors forming small venture capital or hedge funds and other alternative investment structures, including funds formed for specific investments.

  • Corporate and regulatory reviews of the terms of open-end and closed-end investment funds directly or indirectly engaged in hemp or cannabis activities. 
  • Corporate and regulatory counsel with respect to downstream transactions, exits, and secondary transactions.

  • Corporate and regulatory representation of investors seeking to transfer their interests in private investment funds.

  • Providing specific cannabis regulatory advice to law firms engaged in fund formation services.

Experience

  • Represented a sponsor in the formation of a fund established for a targeted cannabis investment, including the negotiation of the investment on behalf of the fund.

  • Represented a cannabis-focused hedge fund, including the provision of fund formation services.

  • Advised multiple global private equity firms on state-specific cannabis regulations and the federal legal status of cannabis and hemp.

News

What is a Cannabis SPAC?

By Charles Alovisetti and Ilya Ross
Feb 19, 2021

With wary investors and a minimal number of FDIC-insured bank lenders in the space, cannabis entrepreneurs are running out of options to raise capital. SPACs create a unique opportunity to fill the current vacuum of capital in the cannabis industry.

Raising Private Capital in the Cannabis Industry

By Charles Alovisetti, Elliot Choi, Sahar Ayinehsazian
Sep 18, 2020

Raising private capital continues to be a challenge for the nascent cannabis industry, but there are proactive steps companies can take to maximize the chance of a successful raise.