NYCEDC and SBS Announce Selection of Cannabis Focused Investment Firm Tuatara Capital as Manager of Cannabis NYC Loan Fund, with $2M Initial Funding

Cannabis NYC Loan Fund Promotes Equitable Access to Capital During a Time of Rapid Expansion for the Cannabis Industry in New York City

Tuatara Capital Brings Nearly a Decade of Experience Working Exclusively in Cannabis Industry

Announcement and Initial Investment Builds on Mayor Adams’ Commitment to Promote the Growth of an Equitable Cannabis Industry

NEW YORK, NY—Today, New York City Economic Development Corporation (NYCEDC) and the Department of Small Business Services (SBS) announced selection of Tuatara Capital as investment manager of Cannabis NYC Loan Fund, which will launch with a $2 million initial tranche. The fund will provide affordable and flexible capital to early-stage cannabis businesses to promote the development of an equitable cannabis industry in New York City. Tuatara Capital brings nearly a decade of experience working exclusively in the cannabis industry with a proven track record of success, managing approximately $400 million in committed capital.

The Cannabis NYC Loan Fund is targeted to be $20 to $30 million, with $9.4 million of that coming from the City, which includes both loan capital and fees. It has been developed with a phased structure, to optimize the fund’s speed to market and overall dollars deployed. The fund will initially launch with a $2 million tranche for licensed Conditional Adult-Use Retail Dispensary (CAURD) businesses, using city capital to meet the urgent need of NYC-based licensees. Simultaneously, Tuatara will begin fundraising, using the remainder of the subordinated city capital to leverage additional monies from other investors. It is anticipated that Tuatara will invest directly into the Cannabis NYC Loan Fund, as well.

The Cannabis NYC Loan Fund has been designed to advance equity within the industry through access to capital. Loans provided through the fund will support borrower’s start-up and ongoing operating expenses, with limited use restrictions and significant flexibility. Additionally, businesses that can demonstrate repayment and evidence financial growth and stability will be able to access larger loans over time.

This fund builds on the Adams administration’s commitment to promote the growth of an equitable cannabis industry in New York City. In August 2022, Mayor Eric Adams and SBS launched Cannabis NYC, a first-of-its-kind interagency hub of citywide resources and services for New Yorkers looking to participate in the legal cannabis market. Loans provided through the fund can be coupled with technical assistance, to increase the likelihood of borrower success. Leveraging existing resources within SBS along with industry expertise, Cannabis NYC will offer borrowers access to an array of cannabis and small business-tailored technical assistance, including free one-on-one loan application assistance.

“Today's selection of an experienced capital partner and fund operator, together with the first tranche of flexible, fair loan funds for eligible Conditional Adult-Use Retail Dispensary (CAURD) businesses, are meaningful steps forward in building an equitable cannabis industry in New York City,” said Deputy Mayor for Housing, Economic Development & Workforce Maria Torres-Springer. “Congratulations to the deeply committed NYCEDC and SBS teams who are leading this important effort.”

“The launch of the Cannabis NYC Loan Fund and selection of Tuatara Capital as fund administrator is a monumental step in financially supporting these new small businesses throughout the five boroughs,” said NYCEDC President & CEO Andrew Kimball. “NYCEDC is thrilled to be partnering with SBS on this first-of-its-kind fund and look forward to this emerging industry contributing to a vibrant, inclusive, and globally competitive economy for all New Yorkers.”

“Today marks a significant step forward in our commitment to ensuring that New York City's cannabis industry is equitable and inclusive,” said Cannabis NYC Founding Director, Dasheeda Dawson. “The Cannabis NYC Loan Fund is not just about providing access to affordable capital; it is also about empowering Conditional Adult-Use Retail Dispensary (CAURD) licensees, especially those who are justice-involved and have faced significant barriers to operationalizing their legal cannabis businesses. By prioritizing these entrepreneurs, we are not only fostering economic growth but also one more step closer to rectifying past injustices and creating a more inclusive and thriving cannabis marketplace in our city.”

“Tuatara is excited to be selected as a partner for New York City to help establish and manage a tailored financing program that will provide capital to deserving cannabis companies that are launching in the city,” said Al Foreman, Managing Partner, Tuatara Capital, L.P.

Founded in 2014, Tuatara Capital, L.P. is a NYC-based private investment firm focused on strategically investing in the growth of companies within the emerging cannabis industry. Tuatara will manage the fund, running day-to-day operations, originating loans, and managing the overall performance of the portfolio.

The secured capital and associated programming from Tuatara Capital will support these early-stage cannabis businesses at a critical moment in business and industry development.

About NYCEDC
New York City Economic Development Corporation is a mission-driven, nonprofit organization that works for a vibrant, inclusive, and globally competitive economy for all New Yorkers. We take a comprehensive approach, through four main strategies: strengthen confidence in NYC as a great place to do business; grow innovative sectors with a focus on equity; build neighborhoods as places to live, learn, work, and play; and deliver sustainable infrastructure for communities and the city's future economy. To learn more about what we do, visit us on Facebook, Twitter, LinkedIn, and Instagram.

About Cannabis NYC (CNYC)
The NYC Department of Small Business Services (SBS) launched Cannabis NYC to make our city the global leader for cannabis industry excellence in education and equity across business, science, and culture, and is reaching this goal by actively creating an interagency hub of free resources and services for all New Yorkers interested in the cannabis industry. Through strategic outreach, public engagement, business services, and advocacy efforts, Cannabis NYC will support the creation of good jobs, successful small businesses, and sustainable economic opportunity to address historic harms of past cannabis prohibition. To stay connected, visit nyc.gov/cannabis and sign up for updates here.

About the Department of Small Business Services (SBS)
SBS helps unlock economic potential and create economic security for all New Yorkers by connecting New Yorkers to good jobs, creating stronger businesses, and building vibrant neighborhoods across the five boroughs. For more information, visit nyc.gov/sbs, call 311, and follow us on Facebook, Twitter, and Instagram.