Wine Basics
Wine Investing
Apr 24, 2025
Investing in wine: a private portfolio or via a syndicate?
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 diversified, expertly-curated portfolios from as little as £3,000 — a fraction of the cost of building a fully diversified private portfolio.
In this article, we explore the pros and cons of both options.
Option 1: Wine Investment Syndicate
At WineFi, we run thematic investment syndicates to allow investment in a tax-efficient, diversified portfolio at a fraction of the cost of owning the underlying assets outright.
We will provide a ‘permitted investment’ list outlining the producers in scope, and a document containing a detailed breakdown of our analysis on the theme, along with estimated returns and portfolio scope.
Allocations are pro-rata to the total investment amount, so that if you invest £30,000 in a £300,000 portfolio, you are entitled to 10% of the exit returns.
Once allocations are closed, WineFi will opportunistically source based on our data analysis, Investment Committee’s recommendations, and spot offers we receive.
As with the private portfolio, WineFi 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.
We will field offers, and sell down the wines over the lifetime of the portfolio, meaning that investors will receive returns throughout the hold period.
Importantly,syndicate members maintain full day-to-day control over the assets via a voting system. This means that the syndicate can vote on all decisions related to the wines that they own, even if that is ousting WineFi as the portfolio operator!
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 arranges 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 (£20,000+) 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 drinking cellar does.
Investors approaching purely from an investment lens will gain considerable benefit from the additional diversification provided by our syndicate structure.
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When is the Best Time to Invest in Fine Wine?
The fine wine market has always been a blend of passion and performance. For some, the allure lies in the artistry of the vineyard; for others, it’s the steady, tangible returns that make fine wine a compelling alternative asset.
But here’s the perennial question for investors: when is the right time to invest?
In our latest analysis at WineFi, we examined one of the most sought-after segments of the market—red Burgundy—to see how timing influences returns. We compared all red Burgundy wines in our investment universe to the Liv-ex Burgundy 150 index, the sector’s benchmark, and looked for patterns that could guide smarter entry and exit strategies.
The Findings at a Glance
Our data paints a clear picture of how red Burgundy performs at different stages of its lifecycle:
🚫 Don’t buy on release – On average, red Burgundy underperforms its benchmark in the first few years after release. That means paying top prices straight out of the gate often isn’t the best move for returns-focused investors.
🎯 Sweet spot: Year 6 – Performance begins to accelerate around the sixth year—coinciding with the median start of the wine’s drinking window. From here, returns tend to outpace the benchmark.
📈 Outperformance window: Years 6–25 – During this period, red Burgundy has historically delivered impressive relative gains. By year 25, the mean return in our dataset was 1.8x higher than the benchmark.
⚠️ After year 25: A trickier game – Performance tends to plateau, and volatility increases. As bottles become rarer and more valuable, prices can swing sharply in either direction. This aligns with the median end of red Burgundy’s drinking window, when investment and consumption dynamics shift.
Why This Matters for Investors
Fine wine, unlike many asset classes, is both finite and consumable. Every bottle opened reduces supply, creating scarcity—but also introducing unpredictability as remaining stock becomes fragmented across cellars worldwide.
By aligning purchases with a wine’s drinking window, investors can:
Maximise potential upside by entering when market demand is strengthening.
Reduce downside risk by avoiding the softer performance often seen in the early years.
Plan exits strategically before volatility overtakes predictable growth.
The Limits (and Power) of the Data
While this study looks at the mean performance of all red Burgundy wines in our universe, individual results will vary significantly by producer, vintage, and even format (bottle size). Legendary producers like Domaine de la Romanée-Conti may defy these trends altogether, while lesser-known estates might follow them more closely.
Still, using drinking windows as a timing tool offers a practical framework for making better-informed decisions—especially for investors building diversified portfolios across regions and styles.
Final Pour
The data tells us that patience pays in fine wine investment—particularly in Burgundy. If you can resist the urge to buy on release and instead enter around year six, history suggests you’ll be swimming with the current rather than against it.
In fine wine, as in life, timing is everything. And for Burgundy lovers, that sixth-year mark might just be the moment when the stars—and the corks—align.
