The Lakes Distillery secures £3.75m funding to support growth

Lakes Distillery has secured an investment from a group led by Gresham House Asset Management.

The funding comes at a time when Lakes Distillery is planning to launch ‘The Lakes Single Malt Whisky – The Whiskymaker’s Reserve’ in September this year.

The Lakes Distillery CEO Nigel Mills 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.”

The £3.75m ($4.7m) funding has been received by the company by means of a secured convertible loan note, which provides an 8% cash yield and a fixed return through payment. Following successful floatation, it will be converted to equity.

The Lakes Distillery’s latest funding round saw participation from existing investors and other high net-worth individuals that recently made an additional £1.6m investment in the company.

The Gresham House’s backing will be supporting the company’s strategy and ambition to create a global single malt whisky brand.

Lead fund manager at Gresham House Strategic Graham Bird 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.”