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Industry

Distilled Spirits Aging and Wholesaling

Company Type

Growth/Direct Investment

Size

Up to $5 Million

Investment Type

Preferred Participating Membership Interests

LATEST OPPORTUNITY: Rickhouse Holding Company (Rickhouse or RHC), a federally licensed wholesaler of distilled spirits, is under contract to purchase ~2,224 barrels of 2.25-year-old premium bourbon; and is raising $4.5MM of capital.

 

  • Unlike most distilled spirits, Kentucky Bourbon must be aged in new charred oak barrels and stored for years as it ages

  • Midstream participants like Rickhouse occupy a unique whiskey industry space that finances aging inventory for downstream buyers. They buy young barrels, age it, and sell to premium and super premium brands at time of bottling

  • Bourbon in barrels have naturally accreted in value as they age. Investing in barrels avoids any consumer brand affiliation, is a short-term expected non-correlated growth category with an asymmetric and compelling potential return profile

  • RHC has been investing in barrels since 2021 and has the two of the largest industry front-line service providers under contract 

Kentucky Straight Bourbon
is a Global Spirit

  • 95% of global bourbon is made in Kentucky

  • Wholesale sourcing is local, and relationship driven

  • New fill barrels (distillate), is made of 51%-80% corn, and is clear, raw alcohol

  • Bourbon is not allowed to have any additives or coloring – all the flavor and color comes through aging in charred new American Oak barrels

  • Minimum aging requirements to become bourbon is 2 years and a day; prime bottling age is 4 to 5 years in age

  • Bourbon is a unique commodity – it must be aged to become bourbon – as It ages it transform naturally the value of a barrel 

Wholesale Bourbon In Barrel:

A Short-Term Alternative Investment Profile

  • Short-term, insured, hard asset (commodity) direct ownership

  • Liquid secondary wholesale market: 300K–500K barrels sold wholesale annually

  • Short-term hard asset that offers expected diversification from soft assets

  • Spirits have been a non-correlated asset class

  • Strong barrel provenance

  • Low carrying costs per barrel

Investment Summary of Terms

  • No management fees

  • $4,461,534 preferred participating membership interests in RHC008 Bourbon Growth Fund , LLC

  • Return Waterfall:
    • Preferred participating member units
    • 1X plus 10% premium then 80% profits participation
    • Rickhouse Holding Company 20% profit participation
  • Whiskey Management Agreement – Brindiamo Group

  • Risk of Loss Program – provided through the Whiskey Management Agreement; Insurer is Lloyd’s of London

  • Perfected security interest under Whisky Management Agreement

  • Active investors have first right of refusal on future funds

  • Semi-annual financial reporting; includes inspection rights, sampling

  • Capital raise covers 27 months of carrying costs; any unused funds will be returned to investors

Management Team

 

Tim McMullen

CEO

Managing Partner of RHC. CEO of an innovative marketing firm, redpepper, LLC., for over 23 years. Expertise in corporate innovation, brand value creation and strategic marketing. For the last 4 years he has been investing in wholesale bourbon and in 2021, founded Rickhouse Holding Company to scale up this bourbon investment enterprise.

 

Samara Anderson

CMO

Partner at RHC and an expert in sales and marketing with over 20 years of experience in the marketing and branding industry. Samara has been a senior executive at redpepper for the last 5 years.

 

Legal Partner

Bryan Bylica

Outside Counsel

Specializes in investment funds law, guiding private equity, SBIC, RBIC, hedge, and venture capital funds through formation, licensing, investment, and dissolution. He is a national expert in SBIC and RBIC compliance, aiding in entity formation, governance, and regulatory adherence. Bylica also manages portfolio transactions for these funds, including mergers, acquisitions, and various equity investments.

 

Tax Partner

Rachel Kraft

RHC CPA

Partner at the CPA firm Kraft and Co. PLLC. Rachel graduated from Belmont University. With Kraft & Company, PLLC since 2005. Areas of expertise: Tax and consulting for individuals and businesses across multiple industries. Auditing of small to medium size businesses, nonprofits and retirement plans.

 

Financial Partner

Mark Kearney

Fractional CFO

Dedicated finance and operations executive with experience working in healthcare information technology, cyber security education as well as various other industries. Over 20 years’ experience in financial planning, analysis and operations. Expertise in all financial aspects including strategic planning, capital planning, contract negotiations, budgeting, forecasting and data analysis.

Learn More About Rickhouse Holding Company

Thank you for your interest in Rickhouse Holding Company.

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CONTACT US

Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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