What’s the best way of investing in wine: via a syndicate or a private portfolio?

At WineFi, we offer two distinct solutions for investors looking to invest in this fascinating asset class.

For a long time, the only option for investing in fine wine was to build a private portfolio. In this model, you own the wine outright and can instruct delivery or sale at any time.

The downside is that this is an expensive and inefficient method of gaining exposure if you are only interested in wine as an asset class, as you have to buy the individual bottles outright yourself.

Another option is to invest through a wine investment syndicate.

With WineFi, that means you can invest in curated collections of fine wine from as little as £3,000 — a fraction of the cost of owning the underlying wines outright.

In this article, we explore the pros and cons of both options.

Option 1: Fine Wine Investment Syndicate

At WineFi, we bring together investors into thematic fine wine syndicates — giving each member the chance to co-invest in carefully sourced collections of world-class wines at a fraction of the cost of buying them outright.

Before any syndicate closes, WineFi provides a clear list of the producers in scope, alongside our data-driven analysis of the theme and historic performance. Investors then decide whether to commit.

Each investor owns a direct share of the wines purchased, in proportion to their investment. For example, a £30,000 commitment in a £300,000 syndicate gives you a 10% direct stake in the bottles acquired.

Once a syndicate is confirmed, WineFi facilitates sourcing and purchasing opportunities — guided by data analysis, Investment Committee recommendations, and market offers — always within the scope agreed at the outset.

After purchase, WineFi arranges secure storage at our partner facility, Coterie Vaults, passing on the preferential institutional rates we receive.

When wines are sold, WineFi executes the transaction and distributes the proceeds pro-rata to each investor in line with their direct ownership.

Importantly, syndicate members retain full control over their assets. Decisions relating to the wines are made collectively by the syndicate, with investors able to vote on key matters — including replacing WineFi as the operator if they wish.

The Benefits

• Lower minimum investment requirements.

• Increased diversification across multiple bottles and vintages.

• Use of WineFi’s data expertise and sourcing channels.

• Capital Gains Tax Exemption on returns for UK residents.

The Drawbacks

• Syndicate members cannot unilaterally withdraw wines from the syndicate.

Option 2: Private Portfolio

What is it?

In simple terms, when we refer to a private portfolio we are talking about a collection of wines that a single investor owns outright. If you are looking to invest a larger sum in wine, we will work with you to source, store, and exit a portfolio of this value.

We will work with you to select a portfolio in line with risk preference, horizon, and any specific regions, vintages, producers, or labels. We will use our supply-side expertise to identify and source wines at a discount to market where possible.

We will then arrange the storage of the portfolio at our purpose-built warehouse, Coterie Vaults – passing on the preferential storage rates that we receive to our investors.

The Benefits

• Complete control over acquisition and exit timing.

• Greater control over portfolio composition.

• Capital Gains Tax Exemption on returns.

• Ability to withdraw specific bottles for personal consumption if desired.

• Use of WineFi’s data expertise and sourcing channels.

The Drawbacks

• Higher minimum investment threshold typically required.

• Reduced diversification compared to syndicate structure.

Conclusion

The choice between private portfolio ownership and syndicated investment largely depends on the investor’s objectives, resources, and level of desired involvement.

In both cases, WineFi will arrange the storage and insurance of the portfolio at our purpose-built warehouse, Coterie Vaults, passing on the preferential storage rates that we receive to our investors.

For investors seeking to invest larger sums and who already foster a love for wine, then the private portfolio allows your wine investment portfolio to reflect your interest as much as your cellar does.

Investors approaching purely from an investment lens will gain considerable benefit from the additional diversification provided by our syndicate structure.