Lennon’s guitar ​sells for $2.85 million

Hello and welcome to Alts Cafe

Highlights from the full issue:

  • Macro: The IMF upgraded China’s 2024 GDP
  • Real Estate: Pending home sales fell to a four-year low
  • Startups: Elon Musk’s xAI raised $6 billion
  • Private Credit: GTCR acquired Surmodics for $627 million
  • Crypto: PayPal ​is now available​ on the Solana blockchain
  • NFTs: Cristiano Ronaldo unveiled his ​fourth NFT collection
  • Art: Lely portraits flopped at auction
  • Vintage Autos: Mecum’s auction net $108 million in sales
  • Coins: An 1891 Netherlands 25 Cents sold for $1.13 million
  • Farmland: The rural mainstreet index fell to 44.2 in May
  • Luxury: Chanel’s revenues rose 16% to $19.7 billion in 2023
  • Wine, Tequila, and Spirits: Alcohol delivery has hit DC
  • Film & Music: Sony Music is in talks to buy Queen’s catalog
  • Precious Metals: Alabama abolished capital gains tax on gold
  • Collectibles: John Lennon’s guitar ​sold for $2.85 million
  • Websites: Shane Cultra sold ​YourLogoHere.com for $45,888

Let’s go.

Wyatt

Table of Contents

Macro View

Bullish News

Bearish News

What are the odds?

Get $25 to play around with using this link.

What are we doing?

​Altea​ Highlights

Check out the ​full roundup​.

Live Deals

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.

What’s changed?

The round is more than half full. There’s a bit more space at the $7.5m valuation, but that’ll rise to $12m soon.

🍿 ​Watch the Q&A​​ 👉​

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​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 hope to have the portal open for investment next week if not the week after.

​Express interest​

Upcoming Deals

Equity stake in festival-caliber opioid documentary​

  • Investment Size: $300,000
  • Minimum Investment: $50,000
  • Potential IRR: 40%
  • Deal Type: Equity
  • Deal Duration: 1-2 years

This investment opportunity involves providing gap financing for the near-complete documentary feature film “Getting Well,” centered on the community response to the opioid crisis in Kensington, Philadelphia. The film promises to be a festival and awards contender, with possible sale outcomes to major networks like HBO and potential showcases at prestigious film festivals such as Sundance.

Drift Capital Fund I LP​

  • Raising: $75M
  • Minimum Investment: $125,000
  • Target returns: 12% to 15%
  • Management fee: 2%
  • Carry: 20%
  • Duration: 10 years

Drift Capital Fund I, L.P. aims to provide investors with access to the collectible car market by identifying, acquiring, and preserving notable automobiles. The fund intends to fractionalize ownership among investors, offering a diversified portfolio of vehicles deemed as “investment-grade.” This deal stands out for its unique approach to asset allocation, emphasizing the historical stability and appreciation of collectible cars.

Pantile Asset Research Structured Note​

  • Investment Size: $500k
  • Minimum Investment: $50k
  • Potential IRR: 12% net return per annum
  • Deal Type: Hedge Fund Structured Note
  • Deal Duration: Two years

A 3-year private debt investment, offering 12% interest per year, paid semi-annually, plus 20% of upside strategy returns paid on the debt obligation. The note is a bullet note (principal paid at maturity), and it is callable by the investor after 2 years. The proceeds are used to leverage firm capital for trading. This issuance would add to the debt we have already issued and paid out, starting in October 2023.

Investor Field Trips

A music-themed investing adventure to Music City, USA.

  • Est. dates: October 21 – 25
  • Est. cost: $7,000 – $9,000

​Trip Overview​

​Reserve your spot​

​ALTS 1​ Fund news

Portal access for new investors should be ready this week.

Real Estate

Bullish News

Bearish News

How to invest in real estate right now:

Keep an eye out for jeonse’s.

Startups

Bullish News

Bearish News

How to invest in startups right now:

Boeing can’t catch a break. It’s jets, on the other hand, have no trouble breaking.

Private Equity and Private Credit

Bullish News

  • CIBC ​hired Brad Aston​, a Barclays veteran, as global head of leveraged finance to expand its business in the US.
  • Deloitte predicted that 25% of PE firms ​will use AI​ to augment their portfolio valuations over the next 5-7 years.
  • GTCR agreed to ​acquire Surmodics​ for $627 million, a 41.1% premium to its 30-day average closing price.
  • Intermediate Capital Group (ICG) is on track to raise the ​largest-ever​ GP-led secondaries fund.
  • Goldman Sachs Asset Management closed its fifth senior direct lending fund, raising more than ​$20 billion​ in total capital.

Bearish News

How to invest in PE and Private Credit right now:

PE firms are still mastering the exit strategy.

Crypto

Bullish News

Bearish News

How to invest in Crypto right now:

Everybody welcome Paypal to the blockchain.

NFTs

Bullish News

Bearish News

How to invest in NFTs right now:

I knew I should have bought the dip on the Trump NFT.

Artwork

Bullish News

  • Heffel’s spring sales ​set records​ with Mary Pratt and Takao Tanabe, totaling $22.6 million and 96% sell-through.
  • Jean-Michel Basquiat’s Native Carrying Some Guns, Bibles, Amorites on Safari ​sold for $12.6 million​, setting a season record.
  • Artrade has launched a new feature called ‘​Fragments​,’ which links a physical masterpiece to a token on Solana.
  • The Getty Research Institute acquired the archive of American gallerist and curator ​Peter MacGill​.
  • Former Microsoft CEO Bill Gates has ​amassed an art collection​ valued at approximately $127 million.

Bearish News

How to invest in Artwork right now:

RansomHub really nailed its branding.

Vintage Autos

Bullish News

Bearish News

  • Vintage cars, including a 1972 Mustang and a 1950 Plymouth, ​were crushed​ by a fallen oak tree during a thunderstorm.
  • Rick Ross’ Car & Bike Show ​faced severe backlash​ for poor organization, long lines, and capacity issues, with many demanding refunds.

How to invest in Vintage Autos right now:

Summer drives in Michigan just got that much better.

Rare Coins

Bullish News

  • Coin experts expect certain rare coins to ​significantly rise​ in value in 2024 due to a surge in buying interest.
  • Stack’s Bowers Galleries announced Part I of the L. E. Bruun Collection, the world’s finest collection of Scandinavian coinage, valued at ​over $10 million​.
  • An 1891 Netherlands 25 Cents ​sold for $1.13 million​, becoming the most expensive Dutch coin ever sold.
  • A ‘Petition Crown’ of Charles II ​sold for $1 million​, becoming the most expensive British silver coin ever sold at auction.
  • A European woman stumbled upon ​2,150 silver coins​ minted between 1085 and 1107 in the Czech Republic.

Bearish News

How to invest in Rare Coins right now:

Is TSA hiring?

Farmland

Bullish News

  • China’s farmland transfer area increased from 29,789 to ​37,638 million hectares​ between 2015 and 2020.
  • Wind and solar projects had a combined footprint of 423,974 acres in 2020, ​only 0.05%​ of the 870 million acres of farmland.
  • PA Gov. Shapiro put forth a budget proposal that ​prioritizes agriculture​ through the Department of Ag’s budget and related investments.
  • Washington County, Maryland ​preserved a 143.65-acre farm​, adding to the 40,000 acres of preserved land in the county.
  • Thanos Technologies and IFFCO ​partnered​ to transform Indian farmland with drone technology across 10 lakh acres.

Bearish News

  • Farmland sales have been ​slowing down​ across parts of the Midwest, with an uptick in no-sales in February and March.
  • The rural mainstreet index ​fell to 44.2 in May​, remaining below growth neutral for the ninth straight month.
  • A hydroponic farm in Winston-Salem, funded with $2.5 million, ​exceeded its budget​ by 100% and produced little food.
  • AM Best ​downgraded​ the credit ratings of Farm Bureau Mutual Insurance Company of Arkansas due to severe weather-related losses.
  • The former head of the Panoche Water District ​pleaded guilty to stealing​ roughly $2 million worth of federally owned water.

How to invest in Farmland right now:

Absolute power corrupts absolutely, even if your power is being the head of a water sanitation plant.

Luxury Goods

Bullish News

Bearish News

How to invest in Luxury Goods right now:

The FTC is starting to remind me of my mom.

Wine, Tequila, and other Spirits

Bullish News

  • Advanced Spirits ​launched Barrel Hub​, the first e-commerce platform for the wholesale bulk whiskey market.
  • A rare whiskey auction is being held by ​Bonhams Skinner in June​, with some bottles expected to sell for up to $20,000.
  • The Wine Market Council ​launched a new study​ to better engage younger and multicultural consumers.
  • The Ontario government revealed ​plans to expand​ the alcoholic beverages marketplace 16 months earlier than initially planned.
  • Alcohol delivery ​has expanded​ in the DC suburbs as jurisdictions loosen rules on alcohol purchase and consumption.

Bearish News

  • Revolution Bars ​rejected​ Nightcap’s restructuring proposal as “incapable of being delivered.”
  • Colorado’s Golden Moon Distillery ​ceased operations​ after failing to find a buyer.
  • Five Tennessee retailers were ​fined over $50,000​ for illegally shipping alcohol without a license.
  • A mobile wine bottler is seeking defense coverage in a ​wine contamination dispute​ titled “Ultima Mobile Bottling, Inc v. Nationwide Agribusiness Insurance Company”.

How to invest in Wine and Spirits right now:

Looks like it’s time to check out DC.

Music and Film

Bullish News

  • Sony Pictures Entertainment’s senior management remains “​optimistic​” about the future of cinema.
  • AI music generator Suno ​raised $125 million​ in a series B funding round.
  • Warner Music Canada ​inked a deal​ with multi-platinum producer Eli Brown and his Loophole Records label.
  • Sony Pictures Entertainment CEO Tony Vinciquerra said the company will use AI primarily to produce films for theaters and television ​more efficiently​.
  • The global market for silicone films, estimated at $1.1 billion in 2023, is projected to reach ​$1.9 billion by 2030​.
  • Sony Music is reportedly in talks to pay ​$1 billion​ for Queen’s music catalog.

Bearish News

How to invest in Music and Film right now:

Keep an eye out for Sony.

Metals and Gems

Bullish News

Bearish News

  • The ​soaring value of copper​ spurred a wave of costly theft cases, with losses of $200,000 in Michigan and $300,000 in St. Louis.
  • Movado’s Q1 sales ​fell 6%​ due to retail challenges; De Beers’ rough diamond sales dropped to $380 million from $479 million.
  • Debswana’s rough diamond sales ​plummeted 48.3%​ in Q1 2024 to $560.9 million as the global diamond market struggled.
  • The silver market is very small and ​in a structural deficit​, according to Endeavour Silver’s Dan Dickson.
  • Thieves broke into a ​Kay Jewelers​ store at the Tulare Outlets, stealing valuables.

How to invest in Metals and Gems right now:

Every kleptomaniac begins with Kay.

Collectibles

Bullish News

Bearish News

  • Two Washington men were arrested for ​defrauding customers​ of over $2 million in sales of fake sports and Pokémon cards.
  • Brick Fest Live at Birmingham NEC ​disappointed attendees​ with half-empty rooms despite promises of rare collectibles.
  • Kobe Bryant’s “Achilles Jersey,” which Ken Goldin ​promised​ would sell for $3 million and $5 million, sold for $1 million over the weekend.

How to invest in Collectibles right now:

Lennon’s guitar sale marks the highest-selling piece of Beatles memorabilia ever sold.

Websites and Domains

Bullish News

Bearish News

  • The Justice Department ​disrupted a botnet​ that allegedly enabled cybercriminals to steal billions from financial institutions.
  • Despite ​being banned​ in the EU and Canada, content from Russia’s RT network is still spreading through hundreds of sites.
  • ICANN ​laid off 7% of staff​ due to a $10 million budget shortfall and sluggish domain name growth.

How to invest in Websites and Domains right now:

More like ICANT.

That’s all for this week

Cheers,

Wyatt

Disclosures

  • We hold BTC, ETH, and a couple Star Wars Action figures in our ​ALTS 1 Fund​.
  • There are a couple of affiliate links above. If you click them, we may get a couple of bucks.

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Author

Picture of Wyatt Cavalier

Wyatt Cavalier

With a background in finance & intelligence analysis, Wyatt has an unhealthy obsession with finding the best blue chip investment opportunities. His previous newsletter, Fractional, resonated deeply with subscribers, bringing actionable insights and unconventional trading strategies. His rare book collection specializes in banned editions. He currently lives in Spain with his beautiful wife, three young boys, and dog Monty.

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