Cannabis Sector Spotlight - Spring 2026

In this report, we examine recent developments in the cannabis industry, which is poised to benefit from both evolving consumer behavior and the relaxation of regulatory constraints. Long hampered by inconsistencies in regulatory approaches at the federal and state levels, cannabis-related businesses – adult-use dispensaries in particular – have grappled with a dearth of capital required for expansion and consolidation. Many traditional credit sources, including banks and private credit funds, are constrained by regulatory requirements or internal policy concerns.

The select pool of lenders who do engage are garnering considerable “scarcity” value, reflected in...

• Rapid repayment:

  • Short tenor (~3 years)

  • Heavy amortization and sweep (~2-2.5 year duration)

• Compelling pricing:

  • All in yield (~15-16%; ~5-600 bps premium to comparables)

• Restrictive covenants:

  • Fixed charge maintenance

  • Leverage maintenance

We believe the current market dynamic represents a unique window of opportunity for credit providers to provide leverage in the cannabis dispensary space at inordinately attractive terms. In fact, we have identified several cannabis dispensary businesses keen to access debt markets on modestly improved terms.

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Contact Michael Brill, Managing Director and Head of Private Capital Markets at Dinan Capital Advisors, for more report insights.