Lakes Distillery is to up its production and build its global brand after securing a £3.75 million investment.

The North East headquartered company, which operates the distillery, shop and visitor centre near the shores of Bassenthwaite Lake, has secured the funds from a group of investors led by Gresham House Asset Management, a specialist equity investment and asset management company.

Their involvement is a further boost to The Lakes Distillery, which recently received £1.6m from another group of investors and high-net-worth individuals.

The company said the backing was an endorsement of its strategy and its ambition to create The Lakes Single Malt Whisky - The Whiskymaker’s Reserve – which is set to be launched in September.

Nigel Mills, chief executive of The Lakes Distillery said: “We’re delighted about the opportunities this investment opens up. 

“We’ve been on an incredible journey so far, and Gresham House’s investment will allow us to take the business to the next level, grow production capacity and build our brand globally.

“The funding will support the growth of the business, allow us to expand of the amount of single malt stock we lay down for the future, and finance some critical capital expenditure projects, including further enhancing our distillery experience for visitors.”

Graham Bird, lead fund manager at Gresham House Strategic, added: “The Lakes Distillery has an impressive and experienced management team led by Nigel Mills, as well as an excellent track record in its field. 

“With ambitions to float the business in two to three years’ time, this fits our mandate very well for supporting pre-IPO companies as well as highlighting our ability to complete innovative deals which provide attractive, risk-appropriate returns.”

The Lakes Distillery was supported by Muckle LLP, led by Andrew Davison and Louise Duffy, as legal advisors and by N+1 Singer, led by Sandy Fraser, as financial advisors, for the Gresham House Asset Management investment deal.

Funding has been provided by means of a secured convertible loan note, structured to provide an 8 per cent cash yield and an attractive further fixed return through payment in kind. 

It will convert to equity on a successful flotation.