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Private Credit Bets Big on Cannabis Companies as Banks Pass

  • Monroe Capital provides credit to accessories maker KushCo
  • In April MGG Investment issued a loan to Mile High to buy hemp
A product made by cannabis and hemp accessories maker KushCo.

A product made by cannabis and hemp accessories maker KushCo.

Source: KushCo

Private credit firm Monroe Capital LLC is betting on cannabis with its latest direct lending deal as banks hamstrung by regulations shy away from the industry.

The Chicago-based lender has provided a $50 million senior secured credit facility to KushCo Holdings Inc., a provider of products such as vaporizers and bags for the cannabis and hemp industries. It’s Monroe’s first foray into lending to the industry, and the latest by a private credit to fill a void left by banks.