Equity fund for rare whisky to launch in HK17th March, 2014 by Amy Hopkins
The world’s first private equity fund for Scotch whisky is readying to launch in Hong Kong this June by attempting to raise US$10 million.
Launched by Rickesh Kishnani and Whyte & Mackay’s former director of rare whisky David Robertson, the Platinum Whisky Investment Fund hopes to raise the funds to invest in rare Scotch whisky stocks.
“Basically, this is a very simple private equity fund,” Kishnani, CEO of the company, told Bloomberg. “Cayman Island-based, we are trying to raise US$10 million to invest in very very rare limited edition Scotch whiskies.”
“We see more and more demand growth in the whisky sector. The supply strategies in the 1980s did not take into account the growth that we are seeing in Asia. Quite simply, we are running out of rare vintages and this is what our fund is going to be investing in.”
According to indices produced by Whisky Highland UK, sales of the top 100 single malts up have shot up 230% over the past three years.
The Platinum Whisky Investment Fund will by buy parcels of rare Scotch whisky to be sold in the future at a profit.
Robertson told The Asset: “Rickesh has strong relationships with distributors and I bring long-standing relationships with renowned distilleries, private collectors and suppliers.”
“Together, this gives us a compelling offer for disposal direct to auction houses and privately to whisky buyers, including affluent connoisseurs, investors and collectors.”
The company expects a 15-20% net average profit per year.