Cannabis Commercial Lender Bespoke Financial Raises $125M To Fuel Rapid Industry Growth

Cannabis-focused commercial lender, Bespoke Financial, confirmed Wednesday that it is closing a $125 million credit facility deal.

The Los Angeles-based company said that the infusion of capital from institutional investment funds is a strong show of confidence in cannabis debt financing as well as its approach to working with these businesses.

This financing follows an $8 million Series A funding round, co-led by Snoop Dogg's Casa Verde Capital and Sweat Equity Ventures, which was completed earlier this year.

"This added lending capacity demonstrates that more institutional investment firms are recognizing the cannabis industry's potential. Institutional investors are chasing high yields and seeking to minimize volatility, especially through investments that are not subject to future COVID-related market disruptions. Cannabis debt financing checks all of these boxes," George Mancheril, the company's CEO said. "Bespoke Financial is serving as a conduit for larger pools of capital to enter the space in a structured and scalable manner ahead of federal regulatory change, if and when that comes."

Following its launch more than three years ago, Bespoke worked with both large and small companies of all license types, including brands like Jeeter, Buddies, Claybourne Co. and Friendly Farms.

"The rise of debt financing is an encouraging and important moment in the history of the industry and will enable smart operators to scale and remain nimble without sacrificing growth opportunities," Mancheril continued. "Debt capital is a tool that has been a mainstay of how traditional businesses operate and is now finally widely available to cannabis businesses of all sizes."