Cordillera Investment Partners, L.P. (“Cordillera”), an investment management firm that exclusively invests in privately-held niche, non-correlated assets, announced it has completed fundraising for its $62 million Whiskey Opportunities Fund (the “Fund”). This is the firm’s first fund to exclusively focus on the buying and aging of whiskey barrels as institutional assets.
The Fund aims to address the growing demand for premium whiskey products by identifying a diverse portfolio of U.S. and non-U.S. whiskey assets. Coined the “Bourbon Boom,” revenues in Bourbon and Tennessee Whiskey grew 249% from 2003 to 2021, according to Distilled Spirits’ American Whiskey Report 2022.
“The rapidly growing demand for premium products in the whiskey industry, combined with increasing investor demand for new and innovative strategies to stay ahead of the economic environment, has presented a tremendous opportunity,” said Chris Heller, Co-Founder and Co-Managing Partner of Cordillera. “Whiskey aging is an undercapitalized market and, therefore, a great opportunity for Cordillera, where we focus exclusively on niche, non-correlated assets. For our LPs, it offers both diversification and compelling potential returns.”
The whiskey industry is experiencing a steep aging curve where market prices of aged products significantly exceed prices of new-fill bottles. The Distilled Spirits report also found that the “super-premium” whiskey category has seen 129.2% volume growth in the last five years. However, capital constraints prevent craft brands and distillers from aging significant quantities of whiskey.
The Fund expands an investment thesis Cordillera began investing in in 2019 through its second flagship fund.
Heller continued, “We appreciate our investors’ continued confidence in our firm and look forward to leveraging our deep relationships throughout the whiskey value chain as we seek to uncover the best opportunities in the market.”
The Fund will target both U.S. and non-U.S. whiskey assets. Its investor base comprises endowments and foundations, family offices, registered investment advisors, and other institutional investors.
Ropes and Gray LLP served as fund formation counsel. Cordillera did not engage a placement agent in connection with the formation of the Fund.
About Cordillera Investment Partners
Cordillera Investment Partners is an investment management firm investing in niche, non-correlated assets. Its investments are generally in sectors that are misunderstood, undercapitalized and uncorrelated with traditional assets. Cordillera manages over $1.5 billion of capital for endowments, foundations, family offices, wealth advisors and other institutional investors. For more information on Cordillera, please visit www.cordillera-ip.com.
