NexGen has been awarded the winning bid of $125 million from the court-appointed receiver to acquire Uncle Nearest — America's fastest-growing Black-owned whiskey brand. The equity contribution of $12.5 million is committed. NexGen is seeking senior secured acquisition financing backed by $529M in verified hard assets at a 48.2% loan-to-value ratio — well below the industry standard of 60–75%.
A court-approved acquisition of a $529M asset base at a fraction of its value. The equity is committed. The court process ensures clean title. The credit is well-collateralized.
"This is not a speculative credit. It is a senior secured loan against $529M in hard assets — distillery real estate, 2,000+ barrels of aged Tennessee whiskey, and one of America's most recognized spirits brands — at a 48.2% loan-to-value ratio. The court process provides clean title. The brand is intact. The debt service is covered by operating cash flow from Day 1."
The distress was a governance and fraud crisis — not a brand failure. Uncle Nearest retains $529M+ in hard assets. The court-ordered receivership provides clean title at closing. Farm Credit's $108M obligation is retired at closing, giving the new lender a first-lien position on all assets.
The court-ordered receivership sale provides clean title — all prior encumbrances, including Farm Credit's $108M obligation, are retired at closing. The new lender receives a first-lien position on all assets with no legacy liabilities. The 2,000+ barrels of aged Tennessee whiskey alone represent $12.5M+ in tangible collateral at $6,250+ per barrel — providing a secondary collateral layer independent of the real estate.
Uncle Nearest sits at the intersection of three high-growth markets: premium American whiskey, spirits-based RTDs, and culturally authentic Black-owned brands. The revenue base supporting debt service is diversified, growing, and proven.
Uncle Nearest went from zero to the fastest-growing whiskey brand in U.S. history in under 5 years. The consumer demand is proven, the distribution is national, and the brand equity is intact.
Nathan 'Nearest' Green was the first known Black master distiller in American history — the man who taught Jack Daniel to make Tennessee whiskey. This story cannot be replicated by a competitor.
The distress was caused by alleged fraud by a former CFO — not consumer rejection, not product failure. The brand is intact. The assets are intact. The receivership process is the cure.
The federal receivership ordered by Judge Atchley ensures a clean sale. All prior encumbrances are retired at closing. The new lender takes a first-lien position with no legacy liabilities.
Conservative 5-year model based on 24% market share capture, RTD expansion, and licensing activation. Positive EBITDA from Q2 Year 1. DSCR exceeds 1.0x from Year 2 and reaches 6.5x by Year 5.
Four parallel revenue engines reduce single-channel dependency and create compounding cash flow. Each stream leverages the Uncle Nearest brand in a distinct market segment, providing multiple sources of debt service coverage.
Premium Tennessee whiskey sold through 50-state distribution. The core revenue engine with proven consumer demand and national shelf presence.
Ready-to-drink cocktails targeting HBCU campuses, Divine 9 chapters, and urban on-premise accounts. Phase 1 launches in 6 Southern markets.
Branded content studio producing micro-dramas and original series. Sponsorships, streaming licensing, and brand integration revenue.
Brand licensing, co-branded products, and strategic partnerships. Leverages the Uncle Nearest cultural story across non-competing categories.
The post-close ownership structure is designed to align all stakeholders with long-term brand growth. 25% of equity remains available for strategic allocation, providing lenders with flexibility for warrant coverage or future capital events.
Unallocated equity reserved for future strategic partners, lender warrants, or secondary offerings. Provides maximum flexibility post-close.
Deal origination, capital markets advisory, and ongoing investor relations. Trinity's equity stake aligns incentives with long-term brand growth.
NexGen principal and operating lead. Walter Miles brings operational expertise and brand relationships to the post-acquisition management team.
Equity reserved to satisfy existing contractual obligations, talent agreements, and legacy commitments carried through the receivership process.
Retained equity for prior Uncle Nearest investors who participated in the original brand build. Preserves continuity and goodwill with legacy stakeholders.
Equity allocated to new strategic investors who participate in the acquisition financing or post-close growth capital.
The 25% available equity pool provides the lender with meaningful warrant coverage optionality. NexGen is open to discussing equity kickers as part of the credit structure. All equity allocations are subject to final documentation and closing conditions.
The turnaround requires a rebuilt leadership team with deep spirits industry expertise, financial discipline, and cultural authenticity. Governance reforms directly address the root causes of the prior distress — ensuring this credit is protected by institutional-grade oversight from Day 1.
Minimum 3 independent directors with spirits industry and financial expertise. Audit committee chaired by independent director. Quarterly reporting to lenders.
All disbursements above $50,000 require dual authorization. CFO and CEO co-signature required for capital expenditures. Monthly bank reconciliation by external auditor.
Finance, operations, and procurement functions separated. No single executive controls both authorization and execution of payments. Addresses the root cause of the prior fraud.
Annual audit by Big 4 accounting firm. Quarterly financial reporting package delivered to lenders within 45 days of quarter end. Immediate disclosure of material events.
Monthly management accounts, quarterly compliance certificates, annual audited financials. Lender receives real-time access to bank account statements and inventory reports.
Anonymous reporting hotline operated by independent third party. Zero tolerance policy for financial misconduct. Direct board audit committee escalation path.
AI-native operations from Day 1 reduce headcount requirements by 60% versus traditional spirits companies of equivalent scale. Lower fixed costs improve DSCR and reduce breakeven revenue threshold.
AI automation across marketing, customer service, content production, and financial reporting reduces operating costs by $4.2M annually versus traditional staffing models. Year 1 ROI on AI investment exceeds 400%.
Trinity Funding Group serves as deal consultant to NexGen on this acquisition. Trinity brings deep experience in distressed asset acquisitions, spirits industry transactions, and structured credit facilities. Trinity is coordinating the financing process and serves as the primary point of contact for lender due diligence.
Uncle Nearest is not a broken brand. It is a great brand that encountered a governance crisis. The assets are real, the demand is real, and the credit is well-secured. Six reasons this is a sound lending opportunity.
48.2% LTV on a $255M facility against $529M in hard assets. Significant collateral cushion even under distressed liquidation scenarios.
Federal receivership ordered by Judge Atchley ensures all prior encumbrances are retired at closing. First-lien position with no legacy liabilities.
The distress was a governance crisis — not a brand failure. 50-state distribution, 2,000+ barrels of aged inventory, and proven consumer demand are all intact.
Four revenue streams provide debt service coverage from multiple sources. No single stream represents more than 50% of total revenue by Year 3.
Independent board, dual-signature controls, Big 4 audit, and comprehensive lender reporting covenants address the root causes of the prior distress.
Comparable spirits brands have exited at $600M–$1B+. A strategic sale or refinance at 5× acquisition price provides full credit retirement with significant equity upside.
Deal Consultant to NexGen on the Uncle Nearest Acquisition
Contact Trinity to receive the full due diligence package, asset appraisals, and court documentation.