Carnation Capital

From Casks to Capital: Private Credit for Wine & Spirits in Practice How does specialised private credit translate into strategic momentum for the wine and spirits sector? At Carnation Capital, we look beyond traditional financial statements and invest funds against tangible assets of the winery or distillery. Our framework supports ambitious producers scaling their operations without diluting their hard-earned equity, while offering sophisticated investors an asset-heavy deployment strategy in a prestige asset class they are deeply passionate about. We are currently focused on European wine & spirits businesses, primarily in France and the UK. Here is how we have recently tailored our financial frameworks across two major hubs in practice: 1. Bordeaux: We structured a 2 year credit facility to a premium wine merchant (nègociant) backed against its wine stock. This turned their stock in a bonded warehouse and regular receivables into immediate liquidity and cash flow by lending against its value. 2. UK: A fast-growing distillery required agile funding for production infrastructure upgrades, raw material procurement, and targeted marketing. We deployed a 1-year secured loan facility, secured against maturing casks, granting the operational runway needed to capture a time-sensitive market window while keeping their expansion schedule perfectly on track. The Shared Value - For Producers & Operators: Capital structures intentionally designed to mirror the natural rhythm of your harvest, sales, and maturation cycles, minimising rigid constraints typical of traditional corporate bank financing. - For Institutional Capital & Sophisticated Investors: A resilient private credit allocation collateralised by physical inventory (typically at a conservative 35-65% LTV), verified receivables, and prime vineyard land estate, providing a robust buffer against public market volatility. Our Non-Dilutive Philosophy We operate on a definitive conviction: capital should accelerate growth, not dilute legacy. Our mandate is clear: Firstly, to deliver entirely non-dilutive liquidity that optimises the winery's daily operations and sales initiatives; and second, to serve as a specialised financial partner who genuinely understands the operational nuances of the wine and spirits sector. We engineer facilities designed to complement, rather than compete with, the unique rhythm of your business. Reach out via DM or visit our website to explore our structural financial framework: https://lnkd.in/gt7FMaTp Disclosures: For informational and educational purposes only. This post does not constitute an offer to sell, or a solicitation of an offer to buy, any security or investment product. Carnation Capital (CIMA) provides structured corporate financing frameworks and does not engage in retail consumer lending. #PrivateCredit #WineIndustry #AssetBasedFinancing #AlternativeInvestments #DistilleryFinance #GrowthCapital #BordeauxWine #inventoryfinance

Bridging the Gap: Why Private Credit is the Modern Engine for the Wine and Spirits Industry The production of fine wine and spirits involves a capital-intensive lifecycle that traditional bank financing often fail to address. For wineries, distilleries and distributors, the primary challenge is a structural "cash-flow gap": the most valuable inventory must mature for years before it generates revenue. At Carnation Capital we specialise where traditional banks hesitate. Through private credit strategy, we focus on bespoke growth capital through high-quality collateral - unlocking the working capital trapped in the cellar or vineyard. For Wine/Spirits Business - We offer: 1. Specialised Valuation: We unlock liquidity trapped in the cellar by valuing ageing inventory (bottles, casks, cases). 2. Agility: Sector expertise ensures rapid execution for acquiring terroir, managing invoices and receivables or scaling production. 3. Bespoke Terms: Financing tailored to harvest/sales cycles For Sophisticated Investors – A Specialised Private Credit Strategy: 1. Tangible Security: Loans are backed by robust physical assets (premium vineyard land, high-demand stock or share pledges in revenue-generating businesses). 2. The Connoisseur Advantage: We align sophisticated investors with a sector they appreciate, and are even passionate about. 3. Non-Correlated Returns: An alternative entry to investing in the wine and spirits industry, decoupled from public market volatility. At Carnation Capital, we believe that when the lender speaks the language of the producer, finance becomes a tool for excellence. Reach out via DM or visit our website to learn more: https://lnkd.in/gt7FMaTp #PrivateCredit #WineIndustry #AssetBasedLending #AlternativeInvestments #CarnationCapital #GrowthCapital #DistilleryFinance #winefinance