Angels Envy Private Equity

[mark fleetwood]

Who else has private equity backing? Not private family ownership like Saz, but plain private equity.

Compared to public ownership and family ownership, will this be a plus, minus or no difference for AE?

[sutton]

Who else has private equity backing? Not private family ownership like Saz, but plain private equity.

Compared to public ownership and family ownership, will this be a plus, minus or no difference for AE?

[ChainWhip]

Was Bruichladdich's resurrection based on similar private equity funding?

[sutton]

Was Bruichladdich's resurrection based on similar private equity funding?

I think so .. I believe Mark Reynier pulled together private investors to get it going again - 12 years or so later, they sold. But I would assume they were getting a return sooner based on the success of the operation.

[cowdery]

If you look into it, the Angel's Envy ownership group is very complicated. It was even before Blue put his money in. I assume it is not a coincidence that they were announced at the same time. That's the capital investment they needed to buy the property and build the facility. I wondered what the delay was because I couldn't imagine the owners of a derelict building were holding out for a better price. Now I see that they probably couldn't move until all of the money was in place.

All you see are the Hendersons and pretty girls in angel outfits, but the president is an international real estate and entertainment investor named Mark Bushala. The chairman of the board is Jay Maltby, former CEO of Cruzan Rum who also once sat on the board of Angostura. His company is called Incubrands. So Blue's private equity money isn't all of the money, just some of it. I'm told the Hendersons have considerable skin in the game too.

You can't compare Angel's Envy to existing companies like Sazerac. You have to compare it to other start ups. Is there private equity investment in other micros? Probably. Anyone who intends to primarily make aged whiskey needs a lot of capital and the investors need to be in it for the long haul. The best-capitalized companies don't always succeed, but they always have the best chance to succeed.

There's nothing wrong with any of this. It's good, in fact, because these are serious people with serious credentials and serious money. They know what they're doing. This isn't the "Hey, my dad has a barn, let's put on a show!" mentality of most micros.

Edited July 11, 2013 by cowdery

[P&MLiquorsEric]

I believe some public grant money is involved also. I remember the city of louisville awarding a bunch to Angels Envy a month ago but they couldnt announce details yet.

I am guessing it was to keep the distillery downtown and renovate an older building rather than building new.

And that building is perfect for exposure. It will be right next to the new downtown interstate bridge project. Nothing like a few hundred thousand vehicles passing within 150 feet of you on a daily basis.

[squire]

What I imagine is aging whisky shaking in the barrel as all that traffic rumbles by.

[squire]

I wish them every success which will encourage other capital investment as well.

[P&MLiquorsEric]

What I imagine is aging whisky shaking in the barrel as all that traffic rumbles by.

I am sure a special "high traffic" edition is on the idea board. Use barrels with more vibration from the traffic, charge 20% more. Genius mr squire.

[bourbonv]

Part of the delay was the new bridges project/expressway expansion. I heard another part was "environmental issues". Still I am glad to see the Hendersons finally getting the shovel in the ground.

Mike Veach

[theglobalguy]

If you look into it, the Angel's Envy ownership group is very complicated. It was even before Blue put his money in. I assume it is not a coincidence that they were announced at the same time. That's the capital investment they needed to buy the property and build the facility. I wondered what the delay was because I couldn't imagine the owners of a derelict building were holding out for a better price. Now I see that they probably couldn't move until all of the money was in place.

All you see are the Hendersons and pretty girls in angel outfits, but the president is an international real estate and entertainment investor named Mark Bushala. The chairman of the board is Jay Maltby, former CEO of Cruzan Rum who also once sat on the board of Angostura. His company is called Incubrands. So Blue's private equity money isn't all of the money, just some of it. I'm told the Hendersons have considerable skin in the game too.

You can't compare Angel's Envy to existing companies like Sazerac. You have to compare it to other start ups. Is there private equity investment in other micros? Probably. Anyone who intends to primarily make aged whiskey needs a lot of capital and the investors need to be in it for the long haul. The best-capitalized companies don't always succeed, but they always have the best chance to succeed.

There's nothing wrong with any of this. It's good, in fact, because these are serious people with serious credentials and serious money. They know what they're doing. This isn't the "Hey, my dad has a barn, let's put on a show!" mentality of most micros.

Nothing wrong with passionate folks (especially from the industry), but that's a LOT of cooks in the kitchen. Like the product so far, and happy to support another local brand.

I've said before and will again, the capital required to kick off a distillery properly.....sure you can launch with small loan and passion, but man! that would be an uphill battle.

[P&MLiquorsEric]

Nothing wrong with passionate folks (especially from the industry), but that's a LOT of cooks in the kitchen. Like the product so far, and happy to support another local brand.

I've said before and will again, the capital required to kick off a distillery properly.....sure you can launch with small loan and passion, but man! that would be an uphill battle.

Its also why the big boys have never worried much about craft distilleries. The chances of the small guys making it around to see extra aged barrels is slim.

The Henderson's have big booze experience and fairly big money behind them. Angels Envy has proven to be a viable brand with a "unique" product. I am curious what plans they have for ancillary products. Clear liquors would be the obvious choices.

I would imagine bourbon/whiskey will remain hot for at least the next five years. At that point AE could be well on its way to viability, further expansion and the attention and/ or dollars of the big boys in the form of a buyout.

[theglobalguy]

I would imagine bourbon/whiskey will remain hot for at least the next five years. At that point AE could be well on its way to viability, further expansion and the attention and/ or dollars of the big boys in the form of a buyout.

Being private equity guys, and from previous launched brands you have to figure that's the play. Launch, show growth, sell to large firm, repeat.

As long as good product gets shipped in the meanwhile, i won't complain.

[squire]

Good product = good for us.

[mark fleetwood]

Being private equity guys, and from previous launched brands you have to figure that's the play. Launch, show growth, sell to large firm, repeat.

As long as good product gets shipped in the meanwhile, i won't complain.

Worse if it's grow, sell to next overbidding p.e. firm and so on. Find the next fool is sometimes what it is. But it's sunny skies right now, I shouldn't be so negative.

[wadewood]

Being private equity guys, and from previous launched brands you have to figure that's the play. Launch, show growth, sell to large firm, repeat.

As long as good product gets shipped in the meanwhile, i won't complain.

In a recent conversation I had with Wes Henderson, he said they had already been approached by several wanting to buy the brand. For them, it's a family business (even with the outside capital) and they want to keep it going.

[squire]

Speaks well for the Hendersons.

[Dolph Lundgren]

Does anyone know where they plan on housing their rickhouses?

[squire]

Was kinda wondering that myself.

[luther.r]

They've currently got their aging and their bottling line in a prefab-style warehouse building in Bardstown. I suppose they could keep that facility or rent space somewhere else.

[squire]

I'm sure they've thought it through but Bardstown has the gout de terrior.

[theglobalguy]

In a recent conversation I had with Wes Henderson, he said they had already been approached by several wanting to buy the brand. For them, it's a family business (even with the outside capital) and they want to keep it going.

Are they majority owner? If not, may not be their choice when the dollar signs grow. I can't blame them for wanting to go it alone, from the passion side you don't have a P&L statement driving every decision. From the financial side, the longer they hold out (assuming they keep launching successful products) the higher the price goes.

[mbroo5880i]

I agree that holding long-term would seem financially advantageous. Of course, every market has a bubble.

[theglobalguy]

Just keep cranking out the tasty products in the meantime....and i'll keep buying.

[mbroo5880i]

Just keep cranking out the tasty products in the meantime....and i'll keep buying.

Yep, the owner isn't relevant as long as product stays the same! Of course, if the owner changes, the Hendersons will do quite well. We need to toast the Hendersons for creating something a little different and quite excellent! :toast: