CapX Partners closed a $5 million multi-year loan to Liquid Asset Brands, a global beverage investment company. Liquid Asset Brands will use the CapX facility to capitalize on an important business addition and move to the next key stage of their business growth.
Liquid Asset Brands (LAB) is a product and brand development and management platform for new spirits brands, spearheaded by its founder and CEO, Marc Bushala.
Bushala and his partners led the development of the craft Kentucky bourbon brand, Angel’s Envy, ranked “Best Spirit in the World” by Spirit Journal in 2013. After the 2015 sale of Angel’s Envy to a strategic buyer, LAB partnered with Spirits Investment Partners (SIP) for investment in and management of early-stage beverage businesses. LAB’s goal was to accelerate the growth and profitability of the portfolio brands.
LAB and SIP’s most recent investment involves the development of a new spirits brand utilizing premium aged whiskey. The company’s ability to leverage key assets attracted LAB to CapX.
While discussing the new whiskey project with LAB & SIP, CapX learned that due to the nascent stage of the brand, commercial banks would be reluctant to provide credit support. While the project did not require any fixed asset financing, an important and timely capital raise was needed to procure aged barreled spirits that will be ultimately finished and bottled for distribution. After researching the supply and demand of the whiskey market, CapX determined that a patient, multi-year loan could be offered.
“After getting to know LAB and Marc Bushala on a previous project, CapX became comfortable quickly with the sponsor’s expertise and ability to scale a business. While the LAB opportunity did not ‘squarely fit the CapX box,’ we found a way to help a new client quickly capitalize on an important business addition and move to the next key stage of their business growth,” said Jeffry S. Pfeffer, managing partner at CapX Partners.