Resources

Following the money and providing a huge push out of the shadows and into the mainstream, Aon, a global firm whose 50,000 employees in 120 countries provide professional and risk management services, has made a broadly based move into supporting the US cannabis industry.

Aon’s move follows hard on the heels of the publicly announced entry into the cannabis markets of First Citizens Bank, the nation’s 19th largest, reflecting the increasing momentum thrusting the cannabis industry into the mainstream. Aon’s move could pave the way for others from the institutional universe, further enhancing the resources available to the industry. It may also add to the cumulation of forces inexorably propelling and impelling (nuanced difference; look it up) it to some form of federal legalization.

We’ve been told that Aon is planning an invitation-only kickoff event around the time of the Benzinga Capital Conference in Chicago in October. Aon has also graciously agreed to co-host an event for the Institutional Cannabis Lending Community (ICLC) the afternoon before the Conference begins, during which time Aon will share with the ICLC’s Participants, on an exclusive basis, its thinking and contemplated product/service suite custom-designed for cannabis businesses. This should also afford Aon the opportunity to benefit from the singularly broad range of the collective industry intelligence, experience, expertise, and contacts accessible among ICLC Participants.

Following its organization less than 18 months ago, the mission of the ICLC is to drive deal flow for and among our institutional Participants and provide ongoing forums for evolving best practices in a rapidly changing landscape. With the announcement in April of three additional Participants, ICLC membership is approaching 30. 

Although the identities of the ICLC’s bank Participants remain confidential, except for First Citizens which authorized its identification, the ICLC’s membership includes a cross-section of geographically dispersed banks ranging in size from single-state community banks up to First Citizens, with discussions about joining currently in process with several other top 50 banks. Additionally, ICLC Participants include: Safe Harbor Financial, a direct lender to the cannabis industry and a conduit for credit union lenders, which reports it has processed more than $12 billion in cannabis-related funds into the financial system; Shield Compliance, a premier provider of cannabis compliance services to about 70 financial institution clients: four major cannabis funds, Altmore, Chicago Atlantic, Rainbow Realty and Silver Spike; specialty lenders, such as Cencor Capital which includes cannabis equipment finance as a core offering; family office and other advisors; and an eclectic mix of others participating in the capital stack and financial services eco-system.

For information about ICLC participation, or how our Participants’ capabilities may be accretive to your businesses, please contact Phoenix Managing Partner Stephen Lenn at salenn@bmdllc.com or Member Brandon Pauley at btpauley@bmdllc.com.