Altitude will draw the line at a certain level of distress, however.

“We’re not looking to save a company from the brink of disaster,” Trauben said. “There will be plenty of opportunities for companies that are under stress or distress to invest in; I don’t think we need to save a company from death.”

While the partners at Altitude are cheering for federal legalization of cannabis, they also admit that the current situation gives them an advantage because they don’t face competition from bigger players.

“It’s nice not having the Blackstones and KKRs and TPGs coming into our world at this moment,” Goldberg said. It also gives Altitude’s portfolio companies the chance to build moats around their businesses before they have to face mainstream competitors, he said.

This article was provided by Bloomberg News.

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