<article>Hong Kong-based Whisky Investment Fund, an offbeat investment vehicle that focuses exclusively on single malt whisky investments, has closed the first of its kind fund above the initial target, raising $12 million.</article>

Hong Kong-based Whisky Investment Fund, an offbeat investment vehicle that focuses exclusively on single malt whisky investments, has closed the first of its kind fund above the initial target, raising $12 million.
The fund has already invested $9 million into a collection of over 14,000 bottles, which are being stored in an independent bonded storage facility in Scotland. The remaining $3 million will be deployed over the next 12 months, the fund said in an announcement on Tuesday.
The vehicle that was closed in June end this year had a target to raise $10 million initially, closed higher with commitments from 50 private investors from around the world. However, it did take it three years since the fund&#8217;s launch to garner the amount. It said it is capitalising on the dramatic sales growth of single malt whisky since its launch in June 2014.
“Single malt whisky is not just a luxury good and a collector’s item, but also an investable alternative asset with good potential returns&#8230;We expect the total collection to have a retail value of over $20 million as we wind down the fund over the next four years,” said Rickesh Kishnani, CEO Whisky Investment Fund.
Moreover, under a pilot of its exit strategy, the fund sold $1.5 million retail value of rare whisky in Hong Kong over the past year to private clients, luxury retail, auctions and F&amp;B outlets such as hotels and fine whisky bars, at a net profit for investors of 65 per cent.
To monetize its investment portfolios over the next four years, the Fund has also signed a global and exclusive distribution agreement with Quintessentially, a luxury concierge service founded in London in 2000, now with 60 offices offices and many members.
Whiskey Investment Fund is a Cayman incorporated private investment company and is administered by Sinopac Solutions &amp; Services. The fund&#8217;s Chief investment officer David Robertson who is also a former master distiller at the Macallan distillery acquires the bottles from private collectors.
The fund is tapping the whiskey market which has seen its value of high-end whiskey grow multiple times. In the first half of 2017, the total sales of collectible whisky bottles in UK auctions rose to GBP 11 million (about 39,000 bottles), compared to GBP 14 million ( about 59,000 bottles) for all of 2016, according to data from Rare Whisky 101.
To get peek into the pricing into the high-end spirit market, a bottle of Karuizawa 1960 was sold for £100,100 in April 2017, setting a new record price for a bottle of whisky at auction.
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HK-based whiskey fund beats target, raises $12m

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HK-based whiskey fund beats target, raises $12m

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