Liquid Asset Brands ("LAB") is a product and brand development and management platform for new spirits brands, spearheaded by its founder and CEO, Marc Bushala. His goal: to build and invest in innovative beverage businesses globally. Bushala and his partners led the development of the renowned craft Kentucky bourbon brand, Angel’s Envy, ranked "Best Spirit in the World” by Spirit Journal in 2013. After the sale of Angel’s Envy in 2015 to a strategic buyer, LAB partnered with Spirits Investment Partners LLC (“SIP”) for investment in and management of early-stage beverage businesses that LAB could help accelerate the growth and profitability of the portfolio brands.
While discussing the new whiskey project with LAB & SIP, CapX learned that the nascent stage of the brand could be problematic for commercial banks to provide credit support. While the project did not require any fixed asset financing, an important and timely capital raise was needed to procure aged barreled spirits that will be ultimately finished and bottled for distribution. After researching the supply and demand of the whiskey market, CapX determined that a patient, multi-year loan could be offered. This would allow LAB to not have to call for additional fund capital and instead, focus more on the creation and ultimate launch of their newest brand.
“After getting to know LAB and Marc Bushala on a previous project, CapX became comfortable quickly with the sponsor’s expertise and ability to scale a business. While the LAB opportunity did not ‘squarely fit the CapX box,’ we found a way to help a new client quickly capitalize on an important business addition and move to the next key stage of their business growth, " stated Jeffry S. Pfeffer, Managing Partner at CapX Partners.