LB Equity has formed a $50 million CBD-focused fund, with plans to invest in brands with between $1 million to more than $15 million in revenue. The fund is willing to invest in non-CBD brands and transition them into CBD brands.

“LBE is targeting the massive opportunity available at the intersection of the rapidly growing cannabis industry and the many emerging brands within the skincare, beauty and related personal care sectors,” Jay Lucas, Managing Partner of LB Equity, said in a statement. “With experienced executives from both the finance and beauty industries, LBE is perfectly positioned to leverage the transformational impact that these newly legalized cannabis-based products will have on the beauty industry.”

The first portfolio investment for the new LB Equity Emerging Growth fund is a significant minority stake in Standard Dose, an online CBD marketplace selling vetted CBD beauty, food, and wellness products.

According to Bloomberg, LB Equity is doing due diligence on an additional five deals and will have the $50 million deployed by the end of 2019.