Overview
Bacchus Capital Management, LLC is a San Francisco-based investment firm specializing in mezzanine and private equity wine industry investments, principally in West Coast premium wineries. In addition to being a capital source to its portfolio companies, Bacchus Capital Management will provide strategic growth capital and operational advisory expertise. Sam Bronfman II is the CEO and Mike Jaeger is President and Chief Operating Officer.

Approach
Utilizing management’s deep industry experience and the extensive network of relationships maintained by Mr. Bronfman and Mr. Jaeger, Bacchus Capital Management will focus its investments in businesses with a track record of profitability and annual shipment volumes of up to 750,000 nine liter cases. Potential investments will likely possess one or more of the following characteristics: Privately/closely held and/or family operated, seeking sales and/or infrastructure growth, moderate to low return on investment for the industry, presenting the opportunity to improve performance and increase value. Should value opportunities arise in businesses outside of this range, Bacchus may make debt and equity investments on an opportunistic basis.

Opportunity
The US wine industry has experienced positive growth trends, particularly at the premium end, for over a decade. According to a report published by Silicon Valley Bank and Scion Advisors, over 50% of American wineries are expected to have a change of control within the next 10 years. Therefore, there will be an increasing need for capital as wineries seek to manage these transitions and implement growth strategies. We believe there will be an increasing opportunity for Bacchus Capital Management to play an important role in serving the capital needs of wineries today and tomorrow.

Background
Bacchus Capital Management was established in 2007 by Sam Bronfman and Peter Kaufman and Henry Owsley. Sam Bronfman is the former President of Seagram Chateau and Estate Wines and former Chairman of the Global Wine Division of Diageo. Messrs Kaufman and Owsley are the two founding partners of Gordian Group, LLC,a New York City-based investment bank specializing in the financial restructuring sector, of which they continue to be President and CEO, respectively. We believe that credit and cash flow analysis are essential skills in the development of a successful investment strategy. Messrs. Owsley and Kaufman have extensive backgrounds in financial markets, having been involved in the credit markets as investment bankers for over 50 years, collectively.