Pelorus Cannabis
Debt Fund

Investment Strategy

A diversified, income-focused private fund with downside protections.

Tap into strong potential returns alongside an institutional operator in a non-traditional lending space while providing consistent opportunistic returns to its investors.

Invest in Pelorus
Offering Overview

Pelorus Debt Fund

Minimum Investment
Asset Type
Preferred Return Hurdle*
Redemption options after 6 months
Annual Return Objective*
*See “Risk Disclosures,” including “Estimates/Targets.”

EquityMultiple is pleased to offer the opportunity to invest in the Pelorus Fund, a mortgage based real estate investment trust with an investment grade credit rating that focuses on the cannabis sector.

Pelorus has established itself as a reliable capital provider in the growing cannabis industry where companies rely on specialized real estate to operate efficiently. Pelorus brings an institutional approach to a non-traditional lending space while providing consistent opportunistic returns to its investors.

‣ The legal Cannabis industry continues to grow and mature throughout the U.S. as Cannabis is now recreationally legal in 19 states and medically legal in another 37 states.

‣ According to Bloomberg, the global legal marijuana market is expected to reach $50B in sales by the end of 2026. In December 2020, the House of Representatives approved a monumental bill that would federally decriminalize Cannabis.

‣ The Fund is able to achieve a significant premium to traditional real estate debt providers, with an average weighted note rate of 13.09% in 2022.

‣ As of September 2022, the Fund’s life to date IRR is 14.26% and has distributed 13.24% annualized cash yield to investors since inception.

‣ The Fund’s status as a REIT allows for a 20% federal tax savings on income distributed to investors. Investors only have to pay state taxes in their domiciled state and not in all the states where loans originated unlike non-REIT funds.

‣ In Q3 2021, the Sponsor successfully closed a $42.3M private placement of senior unsecured notes and became the first cannabis related Mortgage REIT to receive an investment grade credit rating of BBB+ by Egan-Jones Rating Company. The bond has a 7% interest rate and is due in September 2026.

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