One of the main benefits of investing in wine is the potential for appreciation in value over time.
Some wines, particularly those that are considered rare or of high quality, can increase significantly in value as they age and become more sought after.
The question is, how do you actually add wine to your portfolio?
This is where Vint comes in.
Vint is a wine investing platform that allows investors to purchase shares, much like shares in a company purchased on major stock exchanges, in collections of rare wine starting as low as $50!
So, how does Vint work?
Let’s take a closer look with our full Vint review.
What Is Vint?
Investing in wine hasn’t been easy in the past.
Sourcing a bottle of investment grade wine is certainly easier said than done. And once a bottle is purchased, it can cost a significant amount in storage, insurance, and transportation.
Vint got its start in 2019.
The company strives to make wine investing easier on investors through virtually removing the barriers to entry to wine investing.
Traditionally, a wine investment requires significant capital to own a collection or rare bottle of wine.
With Vint, investors can purchase shares of a particular bottle or collection. Additionally, Vint takes care of the storage, insurance, and transportation.
Navigating through the wine market and understanding minute details about vintage or wine producers can be difficult to say the least.
With Vint, investors gain access to a team of expert sommeliers.
The company targets releasing a new collection every two weeks in which investors can participate.
Vint actually invests alongside its clients and purchases 0.5% to 10% of each collection.
How Does Vint Work?
Fortunately, anyone over the age of 18 is allowed to invest with Vint.
Due to the structure of the deals, both accredited and non-accredited investors can participate.
At this time, Vint can only work with those that have a US address, though they are working to open the platform to international investors as well.
Vint has a simple 4 step process for investors:
- First, they acquire the wine.
- Second, they open opportunities for investors.
- Third, performance is monitored closely.
- And finally, they share out proceeds as the wine is sold.
Let’s take a closer look at each of these steps.
1. Vint Acquires Wine
Vint conducts a series of analyses to determine bottles and collections of wine that have the greatest potential for appreciation.
Using their proprietary data models and team of experts, Vint finds deals and actually purchases the wine, which is then transferred to one of Vint’s partner climate-controlled professional storage facilities where they are monitored, insured, and kept in pristine condition.
Once a wine is purchased, Vint will then securitize the wine with the SEC.
2. Wine Opportunities Open For Investors
Once the offering is securitized and approved by the SEC, the wine will become available for investors who can then purchase shares of a collection or bottle rather than purchasing it outright on their own.
When an investor purchases shares of a collection, they are actually purchasing a portion of the LLC that owns the particular bottle or collection and are therefore entitled to a portion of the proceeds.
3. Vint Monitors Performance
Once a deal is fully funded, Vint will monitor the performance.
Over time, Vint may sell a portion of a collection or the collection in its entirety.
4. Proceeds Are Shared With Investors
Once the wine has been sold, all profits will be shared with the investors on a pro rata basis.
The Bordeaux Millennium Collection is a recently funded deal offered through Vint.
This particular collection had a price tag of $100 per share with 1,760 shares total.
In the collection are 168 bottles that are targeted to be sold between 2024 and 2027.
Vint Minimum Investment
The minimum is essentially the cost of a share in a collection, which varies by offering.
In their past offerings, the cost of a share typically ranges from $50 to $100.
Investors looking to invest in wine should recognize that wine is a long term investment.
As such, Vint informs investors that the targeted holding period is between 1 and 7+ years.
How Does Vint Make Money?
Vint makes money in a few ways.
First, as mentioned previously, Vint invests alongside investors. In fact, they purchase up to 10% of the shares of any offering.
This aligns their interests with the investors. If the wine is sold for a profit, they make money as do the investors.
Second, they do have a one time fee for each of the offerings on the platform.
On average, this fee is typically 10% of the total gross offering proceeds.
Is Vint Safe?
Because each offering is securitized through the SEC, Vint is required to have a certain level of transparency.
Vint is regulated by both the SEC and FINRA.
A key benefit of partnering with Vint is that they perform an extensive due diligence process to ensure the authenticity of the wines.
Investing in wine is no longer reserved for the ultra wealthy. Today, you can get started with as little as $50 per share with Vint.
Currently, there is not a secondary market, though the company has stated that they are working on this option.
For now, investors should be prepared to hold an investment until it is sold by Vint.
Vint is open to both accredited and non-accredited investors.
Before making any investment in wine, be sure to educate yourself on the ins and outs of this investment.
Our beginner’s guide to wine investing could help with that!