September 25, 2018

Privateer Holdings is the first private equity firm to invest exclusively in legal cannabis. The company has raised more than $200 million in private capital to invest in the legal cannabis industry, and presently, has four different brands in its portfolio and employs more than 500 professionals on the ground in seven countries spanning four continents.

Privateer Holdings brands include Leafly, a cannabis technology, review, news, and entertainment platform; Tilray, a global medical cannabis producer with patients in eight countries; Marley Natural, the official Bob Marley cannabis brand; and The Goodship, all-natural gourmet edibles.

However, it is Tilray that has made news recently, and has provided Seattle-based Privateer, which holds a 76 percent stake in the company, with a multi-billion dollar windfall.

Based in Nanaimo, a town in Vancouver Island, Canada, Tilray has grabbed the spotlight among cannabis startups, by listing on the Nasdaq, allowing U.S. investors and hedge funds access to its stock. By doing so, Tilray, which had revenue of $20 million last year, has surpassed Canopy Growth to be the largest cannabis company in the world, reaching a valuation of $12 billion in May, and surging to more than $20 billion amid a sweep of volatility.

Privateer Holdings was founded in 2010 by Brendan Kennedy, Michael Blue, and Christian Groh. Collectively, as of March 31, the three hold approximately 45 percent of Privateer’s holdings in Tilray, reported Bloomberg, and if including Class 1 shares, the value of Privateer’s stake in Tilray climbs to a value of $15 billion.

GAI News spoke with Brendan Kennedy, CEO of Privateer Holdings, in March of this year.

“When we first founded Privateer Holdings, we had to do a lot of convincing,” said Kennedy. “At the time, we were the first and only private equity firm investing exclusively in legal cannabis businesses. For every person who was excited about what we were doing, there were 10 more skeptics.”

“This year, the cannabis industry will get even more global,” noted Kennedy. “Most people who operate in this industry think myopically about the opportunity in terms of their own niche or corner of the world. We don’t see it that way. We recognize that we are in the midst of a worldwide paradigm shift.”

“Worldwide” is exact how Privateer and Tilray are viewing its future as well, with plans to expand its business far beyond Canada, and is currently allocating capital to building up production in Portugal, from where it can build a base to supply European markets.

“Our long-term vision is if a patient walks into any pharmacy in any country in the world that has legalized cannabis that patient should be able to obtain a Tilray product. That’s our global goal,” Kennedy said in an interview with Bloomberg.

Kennedy addressed the momentum of the legal cannabis market with GAI News in March, saying, “The global cannabis market – both for medical purposes and responsible consumption – presents numerous opportunities. The end of prohibition is inevitable, and I look forward to witnessing market growth, new products being developed, and the social and economic harms of the war on drugs being remedied in due time.”

-Lynda Kiernan