WHISKEY CAPITAL FINANCE CO. II, LLC

Thesis

Whiskey Capital Finance Co. II, LLC is a specialized private credit fund established in 2018, focusing on the American whiskey industry. Headquartered in Louisville, Kentucky, with operations in Jeffersonville, Indiana, the fund provides non-dilutive, non-recourse debt capital, primarily backed by whiskey barrel collateral. Their investment strategy addresses the significant working capital challenges in the industry, particularly capital tied up in aging barrels. They focus on direct lending to producers, prioritizing younger or new-fill barrels and avoiding speculative plays on barrel pricing. The firm's approach is rooted in conservative underwriting and a deep understanding of the whiskey production lifecycle. As of December 2024, Whiskey Capital had raised a $150 million lending facility, bringing its total committed capital to over $250 million in the U.S. whiskey industry. They offer loan ranges from $1 million to $30 million, with flexible terms including deferred interest options. Their partnerships have assisted over a dozen brands and backed more than 100,000 filled barrels. The fund operates through various vehicles, including Whiskey Capital Secured Financing Fund I and II, and numerous special purpose vehicles.