SAN FRANCISCO–Cordillera Investment Partners, L.P. (“Cordillera”), a specialist investment management firm renowned for its focus on niche, non-correlated assets, has announced the successful closing of its Whiskey Opportunities Fund. The fund, which raised $62 million, marks Cordillera’s first dedicated exclusively to investing in and aging premium whiskey barrels as institutional-grade assets.
This strategic move by Cordillera Investment Partners comes at a time when the demand for high-end whiskey products is surging. The Whiskey Opportunities Fund is designed to capitalize on this escalating market by building a diverse portfolio of whiskey assets from both U.S. and international distilleries. Industry reports highlight the remarkable growth in the American whiskey sector, with Bourbon and Tennessee Whiskey revenues experiencing a 249% increase between 2003 and 2021, a phenomenon often referred to as the “Bourbon Boom.”
“The confluence of rapidly increasing demand for premium whiskey and a growing appetite from investors for innovative strategies that can outperform in the current economic landscape presents a significant opportunity,” stated Chris Heller, Co-Founder and Co-Managing Partner at Cordillera Investment Partners. He further emphasized, “Whiskey aging represents a notably undercapitalized segment within the market, aligning perfectly with Cordillera’s investment philosophy of targeting niche, non-correlated assets. This fund offers our limited partners compelling diversification benefits and the potential for strong returns.”
A key factor driving the attractiveness of whiskey as an investment is its steep aging curve. As whiskey matures, its market value appreciates substantially, far exceeding the price of new-fill spirits. The “super premium” whiskey category, in particular, has witnessed an impressive 129.2% volume growth in the past five years. However, many craft brands and distillers face capital limitations that prevent them from aging significant volumes of their whiskey, creating a market inefficiency that Cordillera Investment Partners is poised to exploit.
The Whiskey Opportunities Fund represents an expansion of an investment strategy that Cordillera Investment Partners initiated in 2019 through its second flagship fund, demonstrating their early recognition of this burgeoning asset class.
Heller added, “We are grateful for the continued trust our investors place in Cordillera Investment Partners. We are eager to leverage our extensive network and deep relationships across the whiskey value chain to identify and secure the most promising opportunities within this dynamic market.”
The fund will target a mix of U.S. and non-U.S. whiskey assets and has attracted a diverse investor base, including endowments, foundations, family offices, registered investment advisors, and other prominent institutional investors.
Ropes and Gray LLP provided legal counsel for the fund formation. Cordillera Investment Partners did not utilize a placement agent for the fundraise.
About Cordillera Investment Partners
Cordillera Investment Partners is a distinguished investment management firm specializing in niche, non-correlated assets. Cordillera’s investment approach focuses on identifying and capitalizing on opportunities within sectors that are often overlooked, underfunded, and exhibit low correlation to traditional markets. With over $1.5 billion in assets under management, Cordillera serves a diverse clientele of endowments, foundations, family offices, wealth advisors, and institutional investors. For additional information about Cordillera Investment Partners, please visit www.cordillera-ip.com.
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