Spirits investment group ASM Capital Group has established the first investment fund fully focused on the American Single Malt Whiskey category.

The development follows the Alcohol and Tobacco Tax and Trade Bureau (TTB) officially recognising “American Single Malt Whiskey” as a distinct category, effective since 19 January.

The ‘ASM Capital Whiskey Fund’ aims to support the growth of the American Single Malt category leveraging a “strategic and proven whiskey barrel investing model”, a statement said.

It will also look to increase “the allure and export appeal of the category worldwide”, and help it compete with Scotch and Irish whiskey imports, while also capturing market share from Bourbon and rye.

Nearly $10m was raised for the fund at the end of last year and a target is in place to secure $250m by 2026 to further purchase barrels.

In a statement, ASM Capital Group said: “With a strong international partner network overcoming the usual barriers to whiskey investing, ASM Capital Group aims to level the supply imbalance and lead the marketplace with 60% ASM category ownership.”

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The venture’s barrel investing model is designed to benefit “homegrown brands” who are looking for aged whiskey products globally in the next two to five years.

ASM’s model involves purchasing, storing, and insuring American single malt whiskey barrels throughout the aging process, providing a valuable product for brands that lack the resources to age whiskey on their own.

The commodity is deemed to be a “low-risk asset” for investors, and fills “distillation and production gap market needs”.

ASM Capital Group is led by a team including Rob and Hunter Robillard, Scott Sciberras, Ross Duignan, and Ryan La Valle.

Rob Robillard, co-founder and manager of the group, previously developed Cabin Fever Maple Whiskey, the first TTB-registered flavoured whiskey, which was later acquired by Diageo.

Commenting on the launch of the fund, Robillard said that he “prefer(s) the road less travelled”, and was “looking to disrupt yet another new space with ASM Capital Group, leading the newly designated ASM category”.

“At ASM Capital Group, we bridge the gap between spirits brands, distilleries, exporters and forward-thinking investors to fuel growth and innovation in the American Single Malt category,” added Hunter Robillard, co-founder and managing partner of ASM Capital Group.

“By investing in aged distillate, the one commodity that connects the industry, the fund is well-positioned to leverage the growing demand for mature returns.”