Can an ERISA plan invest in a medical marijuana company?

What are your thoughts on whether an ERISA plan can participate in a private equity fund that invests in a medical marijuana processing company?

Are you thinking about a risk beyond the business risks of the fund's portfolio companies?

There may be a fiduciary issue being that ERISA is federal law and Marijuana remain illegal at the federal level.   

there are a lots of questions regarding this. The first thing I would ask is what is the relationship of the PE to medical marijuana company, are the providing direct funding via membership/book shares, is it a loan? I've seen people use self-directed IRA funds in various functionality where the PE was purchasing real estate specifically to lease to marijuana companies. I think you would have to look at the Offering Agreement to see how involved and the relationship of PE and marijuana company, that can provide insights to see if an ERISA Plan can invest in the PE. Also, the PE may not want an ERISA plan to invest in it b/c depending on how much is invested, could trigger the Plan Asset Rule.

Thanks for your comments!  I am concerned mostly with the fiduciary risks since marijuana is still illegal at the federal level.