Assess their risks, liquidity, investments, returns, timeframes and other terms
Invest in fractionalized fine wine collections and rare spirits
Invest in farmland
The minimum investment on AcreTrader varies by listing, generally starting at $15,000, with some past deals ranging from $3,000 to $100,000. This range is determined by factors such as the size of the offering and the price per acre.
Investing with Vint carries inherent risks, including market volatility and economic fluctuations that can impact the value of wine and spirits collections. The lack of a secondary market further increases risk by limiting early exit opportunities for investors.
Investing in AcreTrader involves risks like casualty, condemnation, and eminent domain, common to real estate investments.
Vint currently does not offer a secondary market for the trading of interests in its wine and spirits collections, which means that investors generally lack immediate liquidity options.
AcreTrader investments are considered illiquid, meaning investors should be prepared to hold their investments for the specified duration. While it may be possible to sell shares in a private transaction after this period, there is no established market for them, making resale uncertain.
Vint has achieved a net annualized return of 28.7%, calculated from realized exits of its investment offerings, reflecting the aggregate average performance of the platform's assets under management.
The returns from investing in AcreTrader vary, with historical examples showing realized internal rates of return (IRR) ranging from 9.4% to 30.3% over holding periods between 1.7 and 4.2 years. These variations highlight the potential for both moderate and significant returns, depending on the specific investment and market conditions.
Vint's investment time horizon for its collections spans 1 to 3 years on average.
AcreTrader investments target hold periods of 3 to 10 years, though this can vary based on market conditions and sale opportunities. Properties may sell earlier or extend beyond the target period, depending on whether favorable buying offers arise or if market conditions dictate a longer hold.
Investment opportunities with Vint are open to accredited investors, who must satisfy certain SEC-mandated financial criteria.
Investing on the AcreTrader platform is limited to accredited investors, as defined by SEC regulations. Non-U.S. citizens can invest if they are legal residents of the United States.
The wine and spirits market experiences volatility, which can lead to rapid changes in the value of Vint's collections.
Farmland assets on AcreTrader typically exhibit lower volatility compared to stocks and bonds, offering a more stable investment option due to the steady demand for agricultural products and the land's intrinsic value.
Vint adheres to SEC regulations by providing offering circulars for public investment and undergoes regular audits to maintain financial transparency and regulatory compliance.
AcreTrader is regulated by the Securities Exchange Act of 1934, SEC rules, FINRA rules, and state laws, reflecting its commitment to transparency and investor protection. As a registered Broker-Dealer, it must adhere to strict financial standards, undergo regular audits, and comply with ethical practices to maintain its standing and ensure the security of its investors' assets.
Vint's investment assets are professionally stored and fully insured, with a strategic focus on location, primarily in the UK and additional facilities in the US, to align with potential sale markets.
AcreTrader does not explicitly mention specific insurance coverage for investments on its platform. Generally, real estate investments, including farmland, are insured against risks like natural disasters and fire to protect investment value.
Vint does not issue regular dividends; returns are generated from the sale of assets at a gain.
AcreTrader may distribute net cash from annual income to investors after operating expenses, typically once a year in December. These distributions, based on pro rata ownership, are not guaranteed. If distributed, funds go to the investor's AcreTrader wallet or, for SDIRA or IRA accounts, to the custodian.
Investors receive funds from Vint after a collection is sold and proceeds are distributed, less any applicable fees.
Investors can typically get their money back when the property they've invested in is sold at the end of its expected hold period, which may range from 3 to 10 years.
Vint applies a transaction fee of 2.85% on both the purchase and sale of wine shares, encompassing costs for acquisition, storage, insurance, and selling. Additionally, there is a spread fee of 1.5% applied to the transactions of wine shares.
AcreTrader charges investors initial closing costs around 2% of the offering value and an annual 0.75% servicing fee of the land's value for management. The primary revenue comes from a 5% commission on the farm's sale, charged to the seller. There are no “carried interest fees.” Fee structures vary by deal, so reviewing offering documents is recommended for specifics.
After a collection sale, Vint issues pro-rata proceeds to shareholders and provides a 1099-DIV for tax reporting, prioritizing the settlement of any liabilities first.
AcreTrader aims to provide K-1 tax forms electronically by early March, although delays can occur due to external reporting needs. Tax treatment varies: gains on land sold within a year are taxed at ordinary income rates, while longer holdings are taxed at capital gains rates. Depreciation on buildings or equipment may affect taxes.