The Caledonian Malt Fund L.P.

The Caledonian Malt Fund L.P. is an alternative investment fund focused on investment in Scotch Whisky as an institutional asset.
The Caledonian Malt Fund L.P. (CMF) is registered with the Bermuda Monetary Authority under the Investment Funds Act as a professional, closed fund. Fund’s investment objective is to seek total return through investment in premium whisky casks and bottles.

Scotch whisky, often simply referred to as Scotch, is globally acclaimed for its distinct flavor and quality, and is rooted in centuries of heritage. Single malt Scotch whiskies from the highly reputed producer distilleries of Scotland have long been the gold standard for global whisky.

Whether from the Islay, Speyside, Campbeltown, or any of Scotland’s renowned whisky-producing sub-regions, the global demand for Scottish whisky has witnessed consistent and growing demand both from consumers and investors.

Experience and diversity
The Caledonian Malt Fund L.P. brings together a team of experienced professionals who come with a deep network in the global spirits industry and carry out a range of investment management functions, right from sourcing and portfolio management to value creation and exit. This breadth of experience and diversity provides us the perspectives to invest dynamically for the long term, for and with our partners around the globe.

The Caledonian Malt Fund L.P. will make direct investments in casks and bottles, leveraging our preferential sourcing capabilities in primary and secondary markets. Assets purchased by CMF will be insured and stored in HMRC approved and regulated bonded warehouse in Scotland. CMF will explore and deploy multiple exit options to maximize returns.

Non-correlated diversification
On the backdrop of returns volatility from conventional asset classes in both public and private markets, which impacted treasuries, currencies, bonds and stocks worldwide, there is a fundamental market shift towards alternative asset classes which offer non-correlated diversification to the investment portfolio.

Whisky casks are physical, tangible assets and considered a luxury commodity whose investment characteristics are not tethered to conventional asset classes such as Fixed Income and Equities. Controlled release of cask whisky from premium distilleries has ensured long-term price appreciation offering potential risk mitigation and downside protection to the investment portfolio.

Fund’s investment thesis hinges on market forces of supply and demand underpinning Scotch whisky industry. Investment performance is a function of supply scarcity, intrinsic value and quality of the iconic Scotches acquired at lowest possible acquisition costs at any point of their maturing lifecycle ensuring margin of safety on the investment. By leveraging its access to long term capital, the Fund will have a unique ability to optimize the cost structure in both acquisitions and exits, thereby realizing better unit economics and returns on investment.