This Platform Is Pouring Up Returns: Vint Pays Out 21.7% IRR Distribution To Investors In Its Champagne Collection

This Platform Is Pouring Up Returns: Vint Pays Out 21.7% IRR Distribution To Investors In Its Champagne Collection

Wine investing platform Vint returns a 21.7% IRR for its Champagne Collection (VV-CHAM) following a successful sale of a portion of the assets within the collection. The Champagne Collection from Vint, which was offered to investors as a security offering pursuant to Regulation A, was listed for investment on on 7/8/2021 and was filled that same day.

Vint, an investment platform for fine wine and spirit investing, received SEC Qualification in the spring of 2021. Since they’ve launched over 30 offerings allowing investors big and small to diversify their portfolio with collections curated by Masters of Wine (MW) and investment professionals, this distribution makes Vint the first platform to provide investors with returns from a Regulation A wine or spirits offering.

The 22% return on investment is impressive, especially when juxtaposed next to traditional market performance. For example, the S&P returned -13% over the same period, while the Nasdaq fared worse at -24%. However, while impressive, the return isn’t necessarily surprising to investors paying attention to the fine wine market.

The London Vinters Exchange, or “Liv-ex”, the largest fine wine and spirit exchange, provides market updates via its various indices. YTD, the Liv-ex 1000, which comprises the top 1000 traded labels, is up 10.3%. Other indices such as the Liv-ex 100, Champagne 50, and the Liv-ex Bordeaux 50 are all up YTD, with performance at 4.4%, 10.8%, and 3.8%, respectively.

Past research and analysis indicate that the low correlation to traditional markets that fine wine experiences positions it uniquely as a recession-resilient asset class. In 2008, while the S&P dropped -38.5%, the Liv-ex 1000 slipped only 0.6%. Making it an attractive investment vehicle, or at least one worth considering with the uncertainty that is present today. In addition to strong returns, fine wine has proven to be a strong store of value and hedge against inflation.

Nick King, CEO, and Co-Founder of Vint said this about the distribution and market as a whole “This distribution reinforces what we’ve already known, wine is a resilient asset class that has historically performed on par with the major indexes. Additionally, it underscores the value of diversification with alternative assets by returning 19% in today’s bear market. We’re thrilled to be able to provide returns to investors who have historically been unable to participate in this asset class.”

Vint and its team identified this opportunity and the potential benefits of diversification via wine and spirits and have worked to remove the barriers to entry that have long prevented most from diversifying into wine and spirits. As a result, their platform allows investors big and small to add wine and spirit securities to their portfolios. This distribution marks the first time in history that a Regulation A platform has provided returns for one of the world's oldest asset classes, wine. 

Visit Vint’s website for information on upcoming offerings.

Posted In: Alternative investmentsVintwineMarkets
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