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Former JPMorgan, Deutsche Bankers Seek $2 Billion for Pot Funds

  • Silver Spike will launch direct lending, PE and hedge funds
  • ‘We love messy, choppy markets,’ says CEO Scott Gordon
Cannabis plants.

Cannabis plants.

Photographer: Konstantinos Tsakalidis/Bloomberg

Former investment bankers from JPMorgan Chase & Co. and Deutsche Bank AG are launching a new cannabis-focused asset manager, betting that the recent plunge in pot stocks is a good entry point to make loans and do private equity deals in the sector.

Silver Spike Capital plans to raise between $500 million and $1 billion for a direct lending fund in the fourth quarter, followed by a private equity fund of the same size. The New York-based firm is also looking to raise about $200 million for a hedge fund, said Scott Gordon, founder and chief executive officer.