Putting a harder edge on liquid assets, the world’s first private equity whisky fund - Platinum Whisky Investment Fund – began a capital-raising push in Hong Kong this week. The fund offers, its managers say, a unique opportunity to tap exponential, world-wide growth in demand for single malt Scotch whisky.

Putting a harder edge on liquid assets, the world’s first private equity whisky fund - Platinum Whisky Investment Fund – began a capital-raising push in Hong Kong this week. The fund offers, its managers say, a unique opportunity to tap exponential, world-wide growth in demand for single malt Scotch whisky.

Annual sales of single malt Scotch whisky increased by a striking 190 per cent from $390 million to $1.1 billion in the past 10 years, according to the Scotch Whisky Association, driven by the relative scarcity of the premium, vintage product.

The launch of such a fund is an example of how investing in collectibles and non-traditional assets remains an interesting, if niche, area. For some time, there have been funds that invest in areas such as fine art, diamonds, classic cars and fine wine, for example. Such assets – beyond their intrinsic appeal – are seen as offering a hedge against inflation and some measure of diversification, although fund charges and fees can sometimes be higher than funds holding more traditional assets, such as equities. To see an article about fine wine, for example, click here.

Investment Grade Scotch indices produced by Whisky Highland UK show that in the last three years sales of the top 1,000 single malts were up 130 per cent, the top 250 single malts up 200 per cent and the top 100 single malts up 230 per cent.

The fund is being launched with a target commitment of $10 million and a minimum subscription of $250,000. It is being administered by Sinopac Solutions & Services.

‘The fund is a closed-ended, structured private equity investment vehicle that provides unique access to an increasingly rare product. We bring our inside knowledge of the whisky industry to bear in the sourcing of rare product from a proprietary network at under-market prices and this also allows us to trade stock at premium values,” said Rickesh Kishnani, the chief executive officer of the fund. Working with Kishnani is the fund’s chief investment officer, David Robertson, who has 20 years’ experience in the industry and is a former Master Distiller at The Macallan and former Rare Whisky Director at The Dalmore.

“Production of aged whisky takes time and current demand is outstripping supply, especially in Asia. The Platinum Whisky Investment Fund will acquire large parcels of premium whiskies at below market prices to take a strong niche position in the market,” Robertson said.

“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,”
he added.