Invest in long-term appreciation opportunities through fine wine and rare whisky here.
Great taste and a nice buzz aren’t the only things you can toast when it comes to fine wine and rare whisky. There’s also the potential for a nice return on them as asset classes.
Over the past few years, fine wine and rare whisky prices have witnessed growth as investors turn to them as a way to diversify and hedge against inflation. The Knight Frank Fine Wine Icons Index (KFFWII), which tracks a sector of wines that represent the fine wine investment market, is up 149% over the past ten years. Meanwhile, the Knight Frank Rare Whisky index, which tracks the auction results of a basket of rare Scottish single malts, is up 586% over the past decade.
Leveling The Playing Field
Despite the returns, getting access to this multi-billion dollar market historically favored by the ultra-wealthy can be difficult for regular investors. Historically, industry insiders and members of hard-to-get-on allocation lists are the ones who get to take part in this alternative investment opportunity. That’s changing thanks to companies like Vint. The platform for wine and spirits collection investing is leveling the playing field through its equity products and marketplace, giving investors and consumers access to fine wine and rare spirits with the potential for long-term appreciation.
Learn more about the fine wines and whiskies at Vint’s marketplace.
Vint’s innovation aims to capitalize on emerging trends while improving access to these investment opportunities. Demand for the top French wines is growing at the same time that access to them is proving difficult. That has created what the company says is a significant pricing delta among the U.S., Europe and Asia for many of these assets. Through its funds, Vint aims to give investors an efficient and tax-advantaged investment product to capitalize on this arbitrage. The company uses collected investor capital to buy physical bottles and cases of wine and whisky in one region and sell them in another. Once an asset sale is made, Vint reinvests the funds and any gains into new purchases.
Best Of Both Worlds With Vint’s New Fund
To encapsulate that opportunity in both the wine and whisky markets, Vint recently launched the Vint Futures and Casks I (VV-FC1) fund. Open to accredited investors with a minimum investment of $2,500, the goal of the fund is to give investors a blended approach to investing in wine and spirits and capture the quality potential from recent vintages of top wine from Bordeaux and other regions while also leveraging the strong demand and trading activity of spirits casks.
What drives prices for spirits casks and wine futures is the scarcity. When producers limit the release, the market value tends to soar. As it ages and is consumed, quality and scarcity increase, driving the value of the wine or whisky higher. This gives investors the potential for long-term appreciation. Over the years spirits and wine have proven to be a solid investment, outperforming the broader markets.
A popular way to gain exposure to fine wine and rare whisky is through wine and spirits futures. These enable investors to invest in the assets at their release price, providing the potential for significant upside as the price increases. Bordeaux wines, known for their aging potential are one example of a wine that could provide long-term appreciation, but there are others, as well. Cask investing affords investors the same opportunity. The only difference is the aging of whisky and rum is in a barrel or cask rather than a bottle. The Vint Futures and Casks I fund gives investors the best of both worlds, with a target composition of 70% wine futures and 30% spirits casks and a projected hold time of five to six years.
Get wine and whisky exposure through the Vint Futures and Casks I Fund.
Knowledge Is Power
Vint should know a thing or two about fine wine and aged whisky. The company has been around since 2019, offering equity products to investors who want exposure to these luxury asset classes. It also operates the Vint marketplace which sells fine wines and rare spirits to collectors, consumers and merchants. The marketplace was created to give investors the best exit price for Vint investment assets all the while mitigating investment fees. At last check, the Vint marketplace had over $70 million in assets and hundreds of customers. Vint also has performance to back it up – the company has returned capital from 14 deals resulting in an average realized net IRR of 28.7%.
Fine wine and rare spirits investing has long been the domain of a select few. Vint is changing that by giving more investors access to what has the potential for long-term appreciation. Now that’s something to cheer about.
Use the Vint platform to invest for as little as $2500.
Featured photo by Timur M on Unsplash.
This post contains sponsored content. This content is for informational purposes only and not intended to be investing advice.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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