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Wave Financial Group’s Whiskey Fund buys first tranche of Kentucky bourbon

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Following the launch of its limited capacity real asset whiskey fund in March 2020, Wave Financial Group has received its first round of investment from clients and has bought 1,000 barrels of Kentucky bourbon whiskey from the Wilderness Trail distillery.This is an important moment for Wave and the fund that is unique in offering investors exposure to a real asset that would otherwise be exceptionally difficult. Investors will benefit from the potential uplift in value throughout the premium whiskey’s ageing process. A unique and innovative characteristic will be the tokenisation of the holding in year two. It is envisaged that investors will hold for the full five to six year ageing period before bottling, but for those who wish to sell earlier, Wave will be tokenising the holdings in order to facilitate a potential exit.

Benjamin Tsai, President at Wave and manager of the fund, says: “For investors to gain exposure to real assets that have impressive investment fundamentals such as whiskey is very difficult, but now it is possible via our fund. Following the launch in March we are delighted to have completed our first tranche time sensitive capital raise and purchased 1,000 barrels of physical premium Kentucky bourbon whiskey on behalf of our investors.

“Our extensive research has shown that the returns from ageing Kentucky bourbon are very stable and strong over the circa five-year period it spends in barrels before being bottled, so we are delighted to be able to provide investors with exposure to this price appreciation.”

After considerable research into many typically hard-to-access real assets, Wave found that the historical returns from premium Kentucky bourbon whiskey ageing in barrels were more stable and provided more potential upside than other real assets such as fine wine, rare art and pedigree race horses.

There is a growing trend of investors seeking alternative investments that include gold, cryptocurrency and real assets such as spirits. Technology advancements, such as tonekisation, means that any accredited investor can gain exposure to these assets and benefit from price appreciation that is not normally available or accessible in traditional financial markets.

David Seimer, CEO at Wave, says: “As a US based regulated investment management group we are committed to offering exposure to the best assets that offer the strongest potential returns.

“With our unique access to Wilderness Trail’s whiskey production capacity for this year remaining open, we are in a great position to continue the capital raise for the fund.”

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