ICLC Broadens Financial Services Ecosystem Charter, as Aon’s Cannabis Team, CTrust, CRB Monitor and Jarabek and Company Are Added to the ICLC’s Growing Roster of Institutional Participants
In conjunction with a series of strategic decisions driven by a Participant Steering Committee, the ICLC is pleased to announce the addition of four new Participants and broadening its charter to include not only capital stack constituents (debt, mezzanine debt and equity), but a fuller spectrum of the institutional cannabis financial services ecosystem.
Reflecting, and hopefully providing momentum for this charter extension, one of the new Participants is Nicholas Palumbo representing the cannabis team established by Aon, the iconic international provider of professional and risk management services, which has significant non-US cannabis experience and has begun a broadly based initiative into the US cannabis market. Other new Participants include CRB Monitor that provides data driven cannabis compliance and loan origination services, CTrust that provides cannabis industry credit rating, risk management and monitoring tools, in each case to financial institutions, lenders and investors, and Jarabek and Company, which advises ultra-high net worth and family office advisory services that may be considering investing in the cannabis markets.
During the ICLC’s 2nd annual reception in Chicago the day before the October Benzinga Capital Conference, the Steering Committee presented an initial report, which included a consensus that the charter of the ICLC be expanded. Reflecting this charter expansion, the Steering Committee’s consensus was to change the organization’s name to the ICFC (Institutional Cannabis Financial Community). Other Steering Committee recommendations included creating one or more portals to drive more deal flow—initially internally and, potentially thereafter, externally by opening the portal to pre-qualified parties seeking access to Participant resources. They also recommended creating a website to facilitate this objective and attract new, accretive Participants, as well as establishing three new Participant committees, as described below.
Our four new Participants reflect the continuation of a trend first noted in our April 17, 2024 blog.
As contrasted with the proactive outreach involved in recruiting the ICLC’s early participants, contact with the ICLC was initiated by these and most of our other recently reported new participants, a development we find an encouraging reflection of the market’s recognition of the ICLC’s relevance.
To the extent it may be indicative, the ICLC’s experience following the announcement earlier this year that First Citizens Bank, the nation’s 19th largest, had become a Participant, suggests the addition of Aon and the broadening of the ICLC’s charter are likely to spark additional interest participation in the ICLC from other major institutional financial services businesses in or considering cannabis industry activities. This would further extend the ICLC’s reach across the spectrum of the institutional cannabis financial services ecosystem and further its emerging recognition as a center of influence therein.
Extended participation will enhance the ICLC’s potential value to both its Participants and the cannabis businesses that are their raison d’etre, which will enrich the breadth and depth of relevant and accretive financial services resources, cannabis industry experience, skillsets, contacts and perspectives available to Participants and cannabis businesses alike.
To facilitate the ICLC’s objectives, the Steering Committee also suggested the creation of several Participant Committees: a Membership Committee, to help both recruit and curate prospective new Participants; a Programming and Events Committee, to help identify subject matter and expert presenters for virtual best practices programs and plan and oversee in person opportunities and programming; and a Strategic Planning and Development Committee.
For information about ICLC participation, or how our Participants’ capabilities may be accretive to your businesses, please contact either Steve Lenn at salenn@bmdllc.com or Brandon Pauley at btpauley@bmdllc.com.