Altea Update: Nov 22

By Wyatt Cavalier
November 22, 2024

Welcome to your shot of all the best from Altea.

This week:

Early Access to DealGPT (limited access for non-members)
What do you need?
Experiential Due Diligence
New Opportunities
In due diligence
Wrapping Up Now

Not a member yet? Apply today to lock in everything above plus:

No fees on Altea SPVs
Glamorous investor field trips to exotic locations
Access to hundreds of intelligent people (and me)

Apply to join Altea today

LFG.

Table of Contents

Early Access to DealGPT (limited access for non-members)

Last week, I asked you guys for some decks to test our new deal analysis GPT on, and you came through big time.

I struggled to keep up with the number of deals you sent through; there were so many.

The model has improved significantly since last Friday, and I thank you for that.

You can review the output below — there are three new opportunities, and DealGPT generated all the deal memos.

Try DealGPT >

Altea members get unlimited access, but you can use it once a week using code AlteaEarly.

I’ll continue to improve the GPT based on the results and your feedback.

Special thanks to Altean Bob McRae, who has offered to help make this special.

What do you need?

Over the last week or so, I’ve connected three different pairs of Alteans to each other. Each had a specific need/problem I knew someone else could help with.

But each connection happened by chance through my conversations or observations.

Don’t be shy.

If there’s something you’re stuck with, let us know.

Asks and Offers >

If you’d rather not make your ask public, just let me know, and I’ll try to connect you with someone privately.

Experiential Due Diligence

We’re trying something new.

If you like it, pick it up. If you don’t, send it back.

It’s called experiential due diligence. It’s a one to three-day micro version of our investor field trips centered around a specific opportunity.

Site visits to examine, ride, taste, touch, or view the investment opportunity
Meetups with the deal sponsors, founders, or execs
Conversations with independent experts
Dinners, lunches, drinks
Five-star hotel, airport transfers, on-the-ground transport

We won’t do this for every opportunity, but I’ll float a trip when it makes sense.

If there’s enough demand for a trip (probably 3 – 5 people), I’ll organize it. Costs will depend on location, duration, etc.

Here’s the kicker:

If you join the trip and contribute substantially to the opportunity due diligence, we’ll give you a share of the deal’s carry if it goes ahead.

Current opportunities with Experiential DD options:

The Car Crowd – Three Ferraris

London airport transfer if needed
First-class return rail from London to Nottingham
Lunch in Nottingham
Dinner in London (curry in Brick Lane, anyone?)
Overnight accommodation at the fabulous Landmark Hotel

👉 Commit and RSVP

Carnation Capital SPV 1

Airport transfer from Bordeaux–Mérignac Airport if needed
Overnight accommodation at the Yndo hotel
Lunch at a local vineyard
Drinks and dinner at Symbiose

👉 Express interest and RSVP

New Opportunities

Carnation Capital SPV 1

Carnation Capital SPV 1 is a Cayman Islands Segregated Portfolio Company (SPC) aiming to raise USD 10 million to provide financing solutions to small and medium-sized enterprises (SMEs) in the wine and spirits industry. The fund focuses on offering trade credit, private debt, and equity financing to revenue-generating businesses across Europe and Asia.

👉 Express interest and RSVP

Key Investment Details

Minimum Investment: N/A
Projected IRR: Target returns of 20–25% per annum
Total Investment Size: USD 10,000,000
Investment Type: Private debt and equity financing
Investment Duration: 3 years
Name of Deal Sponsor: Carnation Capital

Why this Deal is Worth a Look This investment offers high-net-worth investors unique access to the lucrative wine and spirits sector through structured financing solutions. With targeted returns of 20–25% per annum and semi-annual distributions, the fund leverages the growing demand for alternative financing among SMEs in the industry. Investors benefit from diversification into an asset class with low correlation to traditional markets, along with direct access to fine wines and spirits at discounted prices.

👉 Join the conversation

Australian Fisheries Investment Trust (AFIT)

The Australian Fisheries Investment Trust (AFIT) is an investment trust managed by Atlantis Asset Management Pty Ltd (Atlantis). AFIT invests in Australian fishing rights, specifically Statutory Fishing Rights (SFRs) and Individual Transferable Quotas (ITQs). These rights grant owners a percentage share of a fishery, allowing them to benefit from the Australian seafood industry’s growth. The investment focuses on acquiring assets that deliver a balance of capital growth and income linked to these rights.

👉 Express interest

Key Investment Details

Minimum Investment: AUD 500,000 (will create a rollup SPV if there’s interest)
Projected Return on Investment (ROI): Target of 10% to 12%+ per annum over five years
Total Investment Size: Approximately AUD 94.6 million in current holdings, with a pipeline of an additional AUD 55 million
Investment Type: Equity investment in a unit trust
Investment Duration: 5-year lock-up period
Name of Deal Sponsor: Atlantis Asset Management Pty Ltd

Why this Deal is Worth a Look AFIT presents a unique opportunity for high-net-worth investors to access a limited and regulated asset class with historical capital growth and distributable yield. The investment offers diversification benefits, low correlation with traditional asset classes, and potential for capital appreciation driven by industry consolidation and increasing demand for Australian seafood.

👉 Join the conversation

Cerca Homes SAFE

Cerca Homes is a direct-to-consumer company specializing in the design, manufacturing, and delivery of prefabricated sheds, accessory dwelling units (ADUs), and custom homes. Leveraging an asset-light, scalable model with offshore manufacturing and a trusted network of local contractors for installation, Cerca aims to transform backyards into valuable living spaces across North America. By 2030, the company anticipates creating 10,000 new backyard living spaces annually.

👉 Express Interest

Key Investment Highlights

Minimum Investment: N/A
Projected IRR: [Based on projections; see IRR Buildup section]
Total Investment Size: N/A
Investment Type: Equity (SAFE note)
Investment Duration: Dependent on liquidity event timeline
Name of Deal Sponsor: Cerca Homes

Why this Deal is Worth a Look With over 100 units sold and a projected 76% year-over-year sales growth, Cerca Homes has demonstrated a strong product-market fit and is positioned for significant growth in a burgeoning market. The company’s unique approach combines distinctive design, advanced building systems, and a mature global supply chain to meet the rising demand for versatile housing solutions. Favorable legislation in California and other states further amplifies the opportunity for expansion. The upcoming SAFE round presents an opportunity to invest in a company with strong execution and industry-leading economics before a projected Series A raise in 2025.

👉 Join the conversation

In due diligence

Art Opportunity I

We’ve got well over $1m commitments to this one now, and we’re just waiting on a few legal bits before we proceed.

If you’ve not already committed and would like to do so, you can do that now:

👉 Commit to this Opportunity

After some feedback, we’ll probably make this a three year deal with a one year option to extend if needed.