How you make money
Equity growth
Buy at 3x EBITDA, build scale, exit at 6x
Quality operators in a capital-starved, highly regulated specialty sector trade near 3x EBITDA, versus 8 to 12x for comparable consumer retail. Pelorus acquires them, installs institutional controls, and exits scaled platforms near 6x.
5x
Equity multiple
30%
Projected IRR
24 mo
Hold period
24 mo
Redemption
Sale
Exit strategy
How the deal works
A highly regulated specialty sector — about $44B today, projected to reach $76B by 2030 — is served by 15,000+ operators cut off from institutional capital, so quality businesses trade near 3x EBITDA against 8 to 12x for comparable retail. A 2026 federal policy change removed a punitive tax burden, opening a narrowing window. Pelorus acquires operators, lifts margins toward 16%, and exits scaled platforms near 6x.
Operators trade near 3x EBITDA for lack of capital
Federal constraints cut this sector off from institutional lending, forcing quality operators onto high-cost debt. That capital gap prices them near 3x EBITDA, versus 8 to 12x for comparable consumer retail.
Buy, professionalize, and re-rate toward 6x
Pelorus acquires fragmented operators, installs institutional financial controls and centralized procurement, and lifts EBITDA margins from roughly 9% to 16% — then exits a scaled platform near 6x. The spread is the return.
A vertically integrated anchor already in place
The fund's centerpiece is a vertically integrated California platform spanning production, distribution, and 12 retail locations — a top-10 operator in its state, with roughly $111M in projected revenue.
A narrowing window before the sector reprices
A 2026 federal policy change removed a punitive tax burden, with further reform expected. The entry point is historically low; as institutional capital returns, valuations are likely to compress toward mainstream multiples.
About the sponsor
$1B+
capital placed
$2B+
debt structured
100+ yrs
combined team experience
A specialist private credit and equity platform providing tailored private financing and investment solutions for income-generating real assets, backed by proprietary data and deep industry insight.
A specialist private credit and equity platform, rated A on secured bonds and BBB+ as a company (Egan-Jones).
Dan Leimel
Chief Executive Officer
Rob Sechrist
President
Tanya Krug
Investor Relations
What you should know
What are the risks?
- The sector is federally constrained and subject to shifting regulation; policy changes can help or hurt returns.
- Target returns of 30–35% IRR and 5–8x are projections, not guarantees; acquisitions and exits may underperform.
- The investment is illiquid, with a 2-year lock-up and no public market.
What sector does the fund target?
A $44B, highly regulated specialty sector that federal policy has long kept off-limits to institutional capital. The specifics are walked through on the investor call.
How is the return generated?
By acquiring operators near 3x EBITDA, professionalizing them to lift margins, and exiting scaled platforms near 6x. The fund targets a 30–35% gross IRR and a 5–8x+ equity multiple. Targeted, not guaranteed.
What anchors the strategy?
A vertically integrated California platform already anchors the fund — production, distribution, and 12 retail locations, a top-10 operator in its state with roughly $111M in projected revenue.
What are the terms?
A Reg D 506(c) fund: $50,000 minimum, accredited investors only, an 8% hurdle, a 20% incentive allocation, and a 2-year lock-up. The vehicle is evergreen with a reinvestment option.
