Taking a stake in good wine

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As an asset class, wine offers high returns and low correlation to more traditional financial assets, says Nick King, founder of Vint, which allows investors to buy stocks in wine and spirits collections.

Jeff Beniamino [00:00:03] Hey, folks, welcome to Three Questions, I’m Jeff Benjamin and I’m speaking today with Nick King, founder of Vint, a unique platform for investing in fine wine. How are you, Nick?

Nick King [00:00:14] Doing well. It’s great to be here, Jeff.

Jeff Beniamino [00:00:16] Yes, thanks for being here. I am really interested in learning more about this platform for investing in good wine. Honestly, I don’t know anything about it. So kick off. What? What is this platform and how does it work?

Nick King [00:00:28] I’ll give you a quick background. I come from the investment world. That’s how I looked at wine through that lens. As an investor, I have seen an asset class that has had strong returns, low correlation with traditional financial assets. But it was a fundamentally inefficient market. So the way to invest was basically to send someone twenty-five thousand dollars and you’d have a wine list three weeks later. That’s not how I invest in stocks or other assets, so we thought there was a better way. So we spent eight months with the SEC to qualify under Reg A plus. What it allows us to do is curate collections of fine wines and spirits, file records with the SEC, and then allow anyone who is an accredited and non-accredited investor to buy stock in these collections.

Jeff Beniamino [00:01:18] Wow uncredited. Interesting. I did not expect. What is the minimum investment? How, how can I how can I invest?

Nick King [00:01:26] Yes, I’ll give you a kind of typical collection. So we had a one hundred and eighty-seven thousand dollar collection of Japanese whiskey. There were five thousand five hundred shares at thirty-four dollars a share. You can go buy a share, you can go buy a hundred, and you can buy up to 20 percent of a collection. So we make that entry point very accessible for people to get started and the product very transparent and very efficient to diversify among these world-class assets.

Jeff Beniamino [00:01:59] And finally, what I see is the two-part question. Have you ever had actual possession of the alcohol or was it stored somewhere else and I have a certificate or something?

Nick King [00:02:12] Yes, you as an investor don’t. These are LLCs and when you invest, you own a membership interest in an LLC. So we wanted to structure it this way to be highly financial because I believe this is where the alternative assets industry is going, it will become more and more institutionalized. So having this structure, it lends itself to access those markets. We explored the experiential type of tasting linked to collections from a wine box. But the investment is financial.

Jeff Beniamino [00:02:47] OK. And how much is it? What are the transaction fees or ongoing fees or something like that?

Nick King [00:02:56] Yes, there are no annual management fees which are just sourcing or sourcing fees averaging six to eight eight percent. We justify this as we are buying through our commercial channels. We’re buying about a million dollars worth of wine at a time. And yes, this is built into the share price. Nothing beyond that.

Jeff Beniamino [00:03:19] OK, and one last of our three more questions. Is there a minimum investment requirement?

Nick King [00:03:25] There is not. You can buy a stock and our stock ranges from $ 10 to seventy dollars. So I’d say we’ve pretty much removed any barriers to entry to access this, this asset class.

Jeff Beniamino [00:03:41] Okay, well, I hope we’ve whetted your appetite out there. Nick King, founder of Vint Thank you very much. Nick.

Nick King [00:03:50] Thanks, Jeff.

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