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Ingenious launches Vindemia Wine Fund

Ingenious Ventures, a division of Ingenious the UK based investment and advisory group, is launching the Vindemia wine fund, an EIS Fund that will drive returns for investors through investment in fine wines.

Ingenious is targeting a GBP10 million fund size, providing an exciting and unique opportunity for investors to utilise the best elements of wine as an asset class whilst benefiting from the tax benefits of the Enterprise Investment Scheme. It will target returns of 10.8% p.a. (a gross equivalent return of 21.5% p.a.).

Working with experienced partners in the wine industry, Ingenious will build a portfolio of companies trading in quality, undervalued and marketable fine wines from the top producers in a variety of regions including Bordeaux, Burgundy, Italy and the New World.

The investee companies will engage the services of experienced wine traders, including Peter Lunzer, who has over 30 years’ experience in the wine industry and a strong track record in wine selection. In addition, the investee companies are likely to engage non-executive directors with a range of experience in the fine wine market to assist the management teams. 

The characteristics of restricted supply and growing global demand have resulted in very significant price increases for fine wine. While some of the most exclusive wines have seen exceptional growth, historical price data provides a useful indication of how the world’s 500 most popular fine wine’s prices have performed as a whole over the last 10 years. Since August 2001, average prices have grown at an annual compounded rate of 10.99%. Growth in the last five years has been particularly impressive with the index showing a compounded annual growth rate in excess of 17% over the period.

Sebastian Speight, Investment Director at Ingenious Ventures, says: “The launch of Vindemia is consistent with our strategy of creating diverse investment offerings inspired by demand from our investor base for robust investment opportunities with strong growth potential.

“With Peter on board, we really have a ‘best of breed’ partner with a tremendous track record in driving returns for investors in the wine sector and we look forward to building a portfolio of successful fine wine trading businesses.”

Peter Lunzer, Founder of Lunzer Investments, says: “Wine has proved to be a resilient sector over the past few years with a low correlation to global equity indices. It continues to show strong potential for capital growth going forward, having considerably outperformed UK and US equities since 2001.

“With demand for luxury products continuing to increase with the expansion of the global economy, fine wine is no exception. These consumption patterns are creating a number of opportunities for excellent returns in the trading of fine wines.”

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