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🥃 Tequila investing opportunities with Alts.co
Want to invest in tequila and mezcal? View our current offerings through Altea:
- Tequila I: (CLOSED) We acquired 80 barrels of 100% Agave Tequila for our first investment. Learn more.
- Tequila II: (OPEN) Cash-flowing tequila SPV with annual distributions targeting 30%+ returns. Express interest.
- Agave I: (OPEN) Cash-flowing agave farmland targeting 16% to 27% returns. Express interest.
Welcome to your weekly distillation of all the best from Altea.
Platform Improvements and Updates
I’m building and testing out an AI-powered deal analysis tool and have used it on a few deals so far:
- Tortuga Growth Partners – Project TLX
- rethink INVESTING – 26 Evans Avenue North Mackay QLD 4740
- Vinpactico Wines – Winery Consolidation in BC, Canada
Feedback welcome!
Tequila, Mexico Diligence Trip
After a fantastic few days with Altea member Miguel, I’m back from Tequila, Mexico. This was a diligence trip in support of our Tequila I SPV.
I was there to supervise the barreling and certification process and get a better sense of where our tequila comes from.
Our 80 barrels of 100% agave tequila are split between two distilleries:
I spent time at both distilleries and put my hands on the barrels in each warehouse.
Arette
Arette Tequila is produced in the El Llano distillery, which is one of the oldest distilleries in Tequila, Jalisco, Mexico. It dates back to the early 1900s and was acquired by the Orendain family in 1976.
Named after the horse that won a gold medal in the 1948 London Olympics, Arette focuses on producing high-quality, traditionally crafted tequila made from 100% blue agave grown in the fertile fields of the Tequila Valley.
While in the warehouse, I asked Miguel to show me how we’ll track our barrels using RFID technology. It’s a genius piece of kit.
Each barrel is inspected and tagged by a representative from the CRT, Tequila’s governing body.
And here are our 40 barrels of 100% blue agave tequila from the Arette distillery.
Cascahuin
Cascahuín Tequila was founded in 1904 in El Arenal, Jalisco, Mexico. The distillery and brand have a rich heritage rooted in traditional tequila-making processes. The brand is family-owned and operated, emphasizing artisanal methods and the use of 100% blue Weber agave from the Tequila Valley.
The name “Cascahuín” translates to “mountain of light” or “party mountain” in the indigenous Nahuatl language. Over the years, Cascahuín has maintained its focus on quality and authenticity, becoming a go-to brand for tequila connoisseurs due to its rich flavors and adherence to traditional production techniques.
Known for its smooth taste and rich character, Arette has become a household name in both domestic and international markets.
I tasted the spirits to understand how they’ll change over time.
Set alongside each other, it’s clear how much better and smoother the extra anejo (aged three+ years) is relative to Blanco, which is just out of the distillery. Make no mistake — the blanco is excellent for what it is — but there’s no substitute for extra anejo.
After visiting the distillery, we popped over to the warehouse to inspect the barrels.
And here they are — 40 barrels of 100% blue agave tequila from the Cascahuin distillery.
Rounding out the trip, we explored some farmland suitable for a potential real estate investment in a few months. There’s a lot of opportunity there.
We also popped in on the mayor of Tequila, which might be the most interesting job in the world.
We’re tentatively planning another tequila SPV sometime in the next twelve months to give our investors a sort of tequila ladder that provides a steady income stream as the barrels mature. Let me know if you’re interested.
Live Deals
Alts 1
- Minimum Investment: $20k
- Duration: 10 years (8 to go)
- Target IRR: 20%
- Investment Type: Reg D fund, alternative assets.
What’s the deal
This is our own fund, so please note the obvious bias.
Alts 1 represents a pioneering venture into the realm of alternative investments, seeking to capitalize on unconventional assets historically outperforming traditional market instruments. The fund, led by a team with a blend of military, financial, and technological expertise, positions itself as a dynamic entity agile enough to exploit market inefficiencies across a broad spectrum of alternative assets, including art, crypto, tequila, and more niche ventures like sports cards and distressed music rights.
Funding Status: $500k
What’s changed?
We did a Q&A this week. Have a watch if you’d like to learn more.
Alts.co Equity Round
- Minimum Investment: $5k
- Investment Type: SAFE
- Valuation: $7.5m for the first $250k; $12m thereafter
After a successful pilot program for Altea, our private member community for accredited alternative investors, we’re raising a small round of equity for Alts.co.
The proceeds will be used to leverage our successful media model into a hyper-profitable community.
We think Altea will be the world’s most valuable private investor community by next year, with ARR approaching $9m.
It’s a small raise, so we expect it will fill quickly.
Events
Events next week
Alts.co Equity Raise Q&A
Wednesday, May 29th at 3pm EST (RSVP)
This is a Q&A for anyone interested in our equity raise. Stop by to ask questions about the raise and get a better idea of the Altea roadmap.
Deal Sourcing with Nick Rotello
Tuesday, May 28th at 10 am EST. (RSVP)
We’re speaking with Nick Rotello, Managing Partner at Seven Two Partners, about how to approach deal sourcing.
Nick has over two decades of manager due diligence experience across asset classes, including research on more than 10,000 investment firms worldwide. His experience has been focused on researching alternative (hedge funds, private equity, real estate and distressed debt) and traditional investments (U.S., non-U.S., and emerging market equities and fixed income).
Investor Field Trips
We should have a page put together for the Nashville trip soon. We’ve already locked in some killer guests and speakers.
Nashville
A music-themed investing adventure to Music City, USA.
- Est. dates: October 21 – 25
- Est. cost: $7,000 – $9,000
That’s it for this week. Any questions, comments, or suggestions, please shout.
Cheers,
Wyatt, Stefan, and John
