July 20, 2019

The Lakes Distillery announces £3.75m investment

The Lakes Distillery has secured a £3.75m investment from a group of investors led by Gresham House Asset Management, a specialist equity investment and asset management company.

Joining existing investors and high-net-worth individuals, who recently made an additional £1.6m investment, this is a milestone for the distillery and Gresham House’s backing is an endorsement of the strategy and ambition the company has to create a global single malt whisky brand.

The funding comes on the back of an incredible year for The Lakes, with a number of high-profile spirit and liqueur awards and the widely anticipated unveiling of The Lakes Single Malt Whisky – The Whiskymaker’s Reserve – set for September.

Nigel Mills, CEO of The Lakes Distillery said: “We’re delighted about the opportunities this investment opens up. We’ve been on an incredible journey so far, and Gresham House’s investment will allow us to take the business to the next level, grow production capacity and build our brand globally.

“The funding will support the growth of the business, allow us to expand of the amount of single malt stock we lay down for the future, and finance some critical capital expenditure projects, including further enhancing our distillery experience for visitors.”

Nigel Mills and Paul Currie

Graham Bird, Lead Fund Manager at Gresham House Strategic, commented: “The Lakes Distillery has an impressive and experienced management team led by Nigel Mills, as well as an excellent track record in its field.

“With ambitions to float the business in two to three years’ time, this fits our mandate very well for supporting pre-IPO companies as well as highlighting our ability to complete innovative deals which provide attractive, risk-appropriate returns.”

The Lakes was supported in this deal by Muckle LLP, led by Andrew Davison and Louise Duffy, as legal advisors and by N+1 Singer, led by Sandy Fraser, as financial advisors. Funding has been provided by means of a secured convertible loan note, structured to provide an 8% cash yield and an attractive further fixed return through payment in kind. It will convert to equity on a successful flotation.