The Best Ever CRE Show JF 4046: Private Credit Alpha, Cannabis Lending and Regulatory Moats ft. Peter Sack
Oct 2, 2025
Peter Sack, Managing Partner at Chicago Atlantic, shares insights into the world of private credit, particularly in underserved niches like cannabis lending. He highlights how limited competition allows for better terms and impressive returns of 16-20%. Peter debunks myths about cannabis investing and explains why regulatory moats are crucial. He discusses the implications of potential legalization, the advantages of strong loan documentation, and the differences between public and private fund structures. This conversation is packed with valuable strategies for investors.
AI Snips
Chapters
Transcript
Episode notes
Specialize To Capture Private Credit Alpha
- Chicago Atlantic targets underserved private credit niches to create differentiated alpha.
- Deep specialization lets them drive better terms and higher returns than broad private credit funds.
There Is No Single U.S. Cannabis Market
- U.S. cannabis is fragmented state-by-state and not a single national market.
- Investing is about underwriting specific state regulatory moats and competitive dynamics, not a generic cannabis thesis.
Require Earnings Coverage And Regulatory Moats
- Underwrite loans to ensure earnings significantly exceed proposed debt, typically 1–2x EBITDA coverage.
- Focus on markets with regulatory moats to protect those earnings streams.