Spirits investing, simplified.
99 Proof Partners (“99 Proof”) is an investment firm that organizes and manages investments in the craft spirits space. We work with individuals and family offices that desire to invest in private deals for exceptional returns without the high fees and infrastructure costs often associated with traditional private equity funds.
The craft spirits industry has grown at over 20% per annum for more than the past five years. The market is expected to experience a 30.22% CAGR through 2027 with continued acquisition tendencies. Approximately 50% of the 2000 craft distilleries operate in only one state, creating ample deal opportunities.
Exceptional returns in a fragmented market where smaller craft brands continue to gain market share.
Investment Focus
On behalf of our investors, 99 Proof organizes and manages direct investments in early stage, growth stage, and established businesses with high-caliber teams, attractive valuations, clear growth paths, and lucrative exit opportunities. We offer a balanced portfolio of alternatives, including:
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Growth Investments
Equity investments of $500k-$5mm into growth brands with an established track record of sales, a strong strategy for the future, and an experienced team that can execute. Investments, on average, span 3-7 years and produce a 5-10x return.
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Barrel / Debt Financing
Competitive returns on fully collateralized debt investments. 99 Proof provides loans to growing brands to purchase whiskey from established and successful producers, at their break-even price, to hold and age while preserving capital for revenue generation on existing inventory.
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Real Estate Financing
Many spirit brands seek a location to distill their own spirits and attract customers to experience existing product offerings and test innovations. We provide capital to buy or build facilities that enable rapid scale and boost company valuation for exit.
The 99 Proof Advantage
Early Access
Our connection to the industry provides investors early access to off-market deals in the beverage industry.
Due Diligence
We conduct a rigorous and disciplined due diligence process before approving any opportunity.
Favorable Terms
Aggregating capital allows us to seek favorable terms of investment and gain priority access to future investment opportunities.
Flexibility
Investors can choose in which deals to participate with 99 Proof’s SPV model or invest as a GP to share in the carried interest of all deals.
No Fees on Invested Capital
Unlike most private equity funds charging 2% on invested capital, 99 Proof only shares in carried interest on investments.
Portfolio Diversification
Our portfolio offers a balanced investment approach to risk and return. Investments in equity or debt range from early to mid-stage companies across various segments within the spirits industry.
Portfolio Management
Through board representation, advisory, or consulting services, we actively monitor investments to ensure progress and provide regular updates to investors.
Royal Treatment
Investors have access to target portfolio companies and their products - both existing and innovations not yet available to the general public.
Relationships
Co-Investing with like-minded individuals fosters new connections and friendships with a shared interest in spirits and exceptional returns.
More than Capital
Gaining traction quickly in a competitive environment is key for spirits brands. Sufficient capital is important; however, brands must have the knowledge, connections, and resources necessary to effectively penetrate and fulfill desired markets. To support investments and accelerate growth, 99 Proof deploys a tactical workforce with strong experience in beverage sales and operations.
Brands in hypergrowth mode seeking market expansion are able to take advantage of our sales augmentation model. 99 Proof plugs in to a brand’s existing sales force or creates an entire sales force to increase sales velocity. Brands requiring assistance in strategy, finance, production, supply chain, technology, or exit preparation can also benefit from 99 Proof services.