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  • CLOSING THIS WEEK: The Italian Syndicate 🇮🇹🍷

CLOSING THIS WEEK: The Italian Syndicate 🇮🇹🍷

Plus: Drinks Business article released highlighting Piedmont potential

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WineFi
December 02, 2024

After seeing record demand for The Italian Syndicate, we have nearly reached capacity. If you want to take advantage of current market conditions and invest in the best that Tuscany and Piedmont have to offer before 2025, this is an opportunity you can't miss!

Some of the fine wine professionals predicted a greater interest in the Italian fine wines – as many perceived “high-end Barolo and Barbaresco as a ‘the new Burgundy’ when it comes to the top echelon of fine wines. Indeed, Piedmont  was identified as the region with the most potential over the coming coming year, with 20% of respondents noting its rise, followed by Champagne (17%), Burgundy (14%), Tuscany (12%) and California (9%).

The Drinks Business

The Italian Syndicate

Having experienced record demand, allocations will close this Friday, the 6th December.

Our latest fine wine syndicate allows you to gain exposure to an expertly-curated portfolio of investment-grade wines from Italy’s two premier wine regions – Tuscany and Piedmont – at a fraction of the cost of owning the total portfolio outright.

Our analysis shows that Piedmont has returned an impressive 12.6% CAGR over the past 10 years, whilst Tuscany has delivered 10.7% CAGR*.

Returns are exempt from Capital Gains Tax (CGT) for UK investors, and you can gain exposure from just £3,000. Fees are equivalent to just 2% per annum.

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The Drinks Business Article

The report, based on a survey of over 1,200 international fine wine professionals, reveals a rising global demand for fine wines, with a trend towards greater per-bottle spending and interest from younger millennial drinkers. While Bordeaux is losing favour, regions like Piedmont and Champagne are gaining popularity, with a growing preference for artisanal, organic, and environmentally friendly wines from lesser-known areas.

Outlook for fine wine "bullish", report finds

Sentiments for the outlook on fine wine were “bullish”, a recent report has suggested – with around 64% of those surveyed being positive about fine wine.

Why Invest?

  • Uncorrelated, attractive risk-adjusted returns: Fine wine displays more attractive risk-adjusted returns than mainstream equity, bond and commodities bonds (including the S&P 500 and FTSE100).

  • CGT Exempt: For UK investors, returns are exempt from Capital Gains Tax (CGT). WineFi will provide a letter of recommendation on this theme that can be shared with an account or tax adviser.

  • Expanding Market Share: Demand for Italian fine wine has grown faster than any other wine investment region over the past 5-years, and now accounts for 21% of worldwide fine wine transactions.

  • Growing Momentum: Piedmont is increasingly viewed as ‘a new Burgundy’, with secondary market conditions similar to those that pre-empted the explosive growth in value seen in Burgundy in the 2010s.

  • Resilience: Historically, the max drawdown experienced by these regions has averaged just 3.8%.

  • Low Cost Exposure: Gain exposure from just £3,000 – a fraction of the cost of owning the individual wines outright.

  • Market Timing: The pullback in the wine markets from their October 2022 peak represents an opportunity for investors to take advantage of attractive valuations.

  • Sales Provisions: Individual wines within the wider portfolio are sold opportunistically on a rolling basis over the life of the syndicate, and proceeds are distributed pro rata to investors. In short, investors receive pay-outs over the lifetime of the syndicate.

Deal Overview

  • Permitted Investment: Select producers from Piedmont and Tuscany.

  • Risk Profile: Balanced

  • Anticipated Return: 11.8% net CAGR (74.7% absolute return)

  • Minimum Investment: £3,000

  • Expected Hold Period: 5 Years

  • Tax Incentives: Capital Gains Tax (CGT) Exempt for UK investors.

  • Expert: Peter Lunzer (£85m+ invested on behalf of clients).

  • Fees: 10% taken up front (equivalent to 2% AMC) covering storage and insurance. No further fees to be taken.

  • Structure: UK bare trust nominee, holding the assets on behalf of syndicate members

  • Deadline: December 2024 (exact date TBC).

  • Capital at risk: Fine wine is an unregulated asset class, and the value of investments may fall as well as rise. Please see Investment Presentation for a comprehensive risk overview.

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