FDLD Target Holdings I Limited Partnership
INCEPTION DATE: March 6, 2021
OFFERING CLOSED: Fully subscribed as of July 15, 2021
INVESTMENT TYPE: Equity
INVESTMENT OBJECTIVE: Capital Appreciation
INVESTMENT HORIZON: 3-5 years
PRIVATE OFFERING ANNOUNCEMENT: Cantera Negra Tequila
March 6, 2021 | FDLD Holdings introduces an exclusive private equity offering for investors in Cantera Negra, a premium tequila brand that is neck-and-neck with the growth cadence of Casamigos tequila, which sold to Diageo for $1 billion in 2017, an estimated 30x multiple of gross revenue. Diageo has used this strategy to surprise competitors and capture significant market share twice now, repeating their 2017 success in 2020 with the purchase of Aviation Gin for $610 million. Diageo’s biggest competitors - industry giants like Constellation Brands, Bacardi, and Brown-Forman - are hungry for the right acquisition, which is an independent brand with strong growth that has reached the sales threshold of at least 80,000 cases per year and 25% growth the following year.
As the demand for tequila continues to outpace the growth of other spirits, premium tequila brands are the hottest target for major market players competing for the next big win. Cantera Negra is the only tequila brand on the market currently on target to achieve these results. The fast-growing tequila brand exceeded 2020 sales projections, even amid a COVID-forced pivot from restaurant sales to off-premise sales outlets like liquor stores. Cantera Negra is now available in 25 states and on track to hit sales of 40,000 cases in 2021 ($5 million in revenue).
Fund Economics
- INVESTOR PROJECTED MULTIPLE:
6x
- MINIMUM INVESTMENT:
$100,000 ($25,000 for qualified mid-career professionals)
- OFFERING SIZE:
$1.5 million
OFFERING OVERVIEW
Investment Objective: Capital Appreciation
We anticipate that Cantera Negra will continue advancing their rapid gain in market share and become the tequila brand that Constellation Brands, Bacardi and others bid to win within 3-5 years. Throughout the course of the investment, FDLD Holdings will assist in enhancing asset value through strategic introductions across key customer, influencer, and private equity relationships. As the company prepares for potential acquisition, we will work closely with the management team to attract market interest and maximize the equity multiple. This comprehensive strategy will allow us to exit the investment at a $300-$900 million valuation and conservatively projected 600% return based on a 4-year hold.
Offering Highlights
- Investor payback preference. 100% of all distributions received into the Limited Partnership for any reason are allocated as “payback” and distributed to investors until such point that all investors are made even on their initial investment.
- IRA-eligible. This is an eligible investment within many self-directed IRA plans.
- Performance-based fees. FDLD Management receives nothing unless all investors are profitable.
- Highly reasonable costs. Low interest carry from general partner.
Offering Documents
The following documents have been provided by FDLD Management for FDLD Target Holdings I Limited Partnership. To request documents or additional information on this offering, click here to access our request form. If we do not have the proper non-disclosure agreements on file for you for this offering, you will be required to affirm those via DocuSign prior to receiving the information.
- FDLD Target Holdings I LP Subscription Agreement
- FDLD Target Holdings I Limited Partnership Agreement
- Investor Suitability Questionnaire
Investor Reports
Investors will receive quarterly reports in accordance with the terms set forth in the Limited Partnership Agreement, as well as a year-end financial statement that includes an income statement and balance sheet with an annual accounting of expenses born by the Partnership. After the close of the accounting year on December 31st of each year, the general partner will prepare and mail K-1's to investors.
Performance Updates*
Investors will receive quarterly performance updates on this target holding. These reports provide a snapshot of sales, financial, and operational data that we believe investors will find useful in tracking the performance of their investment.
Management Updates*
Investors will receive management updates that may include general information on the company; recent news, media promotions, & press; new product announcements; and/or deeper insights into the company’s operations, distribution, strategy, marketing & sales efforts, or financial performance.
*You will receive this information and/or notifications for how to access information, schedules &/or live events, via the email address you have on file with FDLD Holdings. Certain information, if proprietary, will be marked as such and is not sharable under the terms of your non-disclosure agreement. As part of FDLD’s core values of transparency and supportive, networked growth, we encourage companies participating in one of our target offerings to voluntarily elect to have us share regular performance and management updates with investors. Please note that neither FDLD Holdings nor the target company is obligated to share this information with you. We trust that you will use these updates to help promote and support the overall efforts and success of the target company and your investment.