April 11, 2012 — Two full-time bankers and part-time wine collectors hope to raise up to $50 million for their wine investment firm, according to Bloomberg.
The Wine Trust, formed in 2010 by Brian Mota, 38, and Timothy Clew, 40, buys wine to keep prices down and secure significant supply of the most coveted wines in the world. The trust works like a private-equity fund in which money invested is kept off limits for as long as eight years to help investors get through tough economic times, Bloomberg Reporter Krista Giovacco writes.
The Wine Trust capitalizes on the disparity in prices across geographical markets to get the highest returns on its sales, according to Bloomberg. It sells primarily to retailers and restaurants, as well as those listed on the online wine-trading website Liv-ex.
“In 2010, investors started showing more receptivity to hard assets, Mota said. ‘That’s the case we’ve been making all along; it’s a real asset investment much like an allocation to gold, commodities, metals, and other things that have tangible underlying value,’ he said.”