Exclusive interview with Ashley Beal, Senior Vice President of Operations at CapStone Holdings
CapStone Holdings is a private family office focused on high-growth, technology-based industries. The company provides private capital and continues to be actively involved in its investments. The portfolio spans multiple industries, including cannabis. Ashley Beal, Senior Vice President of Operations, spoke to New Cannabis Ventures about CapStone’s investment approach and its cannabis investments. The audio of the entire conversation can be found at the end of this written summary.
The start of CapStone
The company began in 2016 as CSI Kickstart as an investment arm of CSI Enterprises, the chairman and founder of Keith Stone. CSI, a fintech company founded in 1989, was sold for around $ 600 million in 2019. After the sale, the investment vehicle was restored as CapStone Holdings.
Keith Stone is the founder and chairman of CapStone Holdings.
According to Beal, Stone brings more than 30 years of global fintech and fleet management expertise to CapStone. His wife, Heather Stone, is also a key member of the company’s executive team, offering her strategic business expertise in various industries.
Beal first met Keith Stone at CSI five years ago. In her current position at CapStone, she helps ensure that the company’s investments are fully reviewed and supported.
The CapStone team is small and cohesive, including other roles such as CFO, Marketing Director, Executive Vice President and Regional Investment Director.
According to Beal, all of CapStone’s capital is privately owned by Keith Stone. To date, the company has deployed approximately $ 250 million, including business and philanthropic investments.
In recent years, the company has invested in industries such as fintech, real estate, healthcare, mobility and sustainability. The company recently invested in the St. Louis town foundry development, logistics company Pro-Tech Group, and autonomous vehicle company Perrone Robotics.
CapStone has invested in companies like Pro-Tech Group and Perrone Robotics.
CapStone made three investments in the cannabis room. Initially, a $ 50 million investment was made in a senior credit facility from Curaleaf. In December, the company announced a $ 25 million investment in Ilera Healthcare, a division of TerrAscend as part of its $ 120 million debt business. Most recently, CapStone invested $ 2 million in the cannabis industry’s United Green human resources company.
CapStone has invested $ 50 million in Curaleaf.
The company focuses on the medical aspect of the cannabis industry and selects Curaleaf and Ilera Healthcare for their medical products.
Shortly after CapStone made its investment in Curaleaf, the company announced a major acquisition to expand its presence in Europe. The company prefers short-term, high-growth opportunities. They do a thorough analysis of each opportunity and, according to Beal, look not just at the numbers, but also at the leadership’s cultural fit and integrity.
When it comes to structuring investments, it depends on the company in question. CapStone does not have a set investment strategy that companies have to fit into. Debt, loan facilities and equity investments have all been made, Beal said. Once the investment is made, CapStone is happy to participate in the success of its portfolio companies as the investments grow.
According to Beal, CapStone is also looking for companies that can benefit from the existing synergies. For example, United Green provides networking opportunities for the company’s other two cannabis investments. The industry is growing rapidly and there is a need for talent to support that growth.
The future of cannabis investment
The majority of CapStone’s portfolio companies are headquartered in North America, although many operate internationally. The company is primarily focused on the US, but is exploring opportunities around the globe, according to Beal.
In the cannabis space, CapStone will continue to have a passion for the medical aspect of the industry. The prospect of federal legalization is unlikely to change how the company views future cannabis investments. However, Beal believes this regulatory change will help CapStone’s current investments and expand the company’s ability to align with more medical cannabis companies.
Positive regulatory changes will help the industry move forward, but the fast-growing industry will still suffer from mounting pain and consolidation. Companies have the opportunity to solve important problems as the industry evolves.
As CapStone considers future investments, it will continue to examine short-term, high-growth opportunities. The same key metrics that apply to any investment are important in both the cannabis space and a company’s cultural fit and leadership team. According to Beal, CapStone is ready to use its resources and invest capital quickly and efficiently.
Please visit the CapStone Holdings website for more information. Listen to the entire interview:
Carrie Pallardy, a Chicago-based writer and editor, began her career in the healthcare industry writing, editing, and interviewing subject matter experts from a variety of industries. As a published author, Carrie continues to tell her network of readers compelling, undiscovered stories. Contact us for further information.
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In this article:
Ashley Beal, CapStone Holdings, Cure, Curaleaf, Curlf, Ilera Healthcare, Keith Stone, TER, Terrascend, TRSSF, United Green