D2: Markets: Background: Wine Investing with Marcus Allen of Cult Wines
Marcus Allen is director for EMEA (Europe, Middle East & Africa) at Cult Wines and joined the company in 2014.
Cult Wines is a fine wine asset manager with £300 million invested in wine for individual, private clients. They build and manage their client's wine portfolios end-to-end, with a view to investing in wines that will grow in value.
The turnover has grown from £3.6m in 2012 to £58m in 10 years and the business now has offices in London, Hong Kong, Singapore, Shanghai, New York and Toronto
In terms of the length of investments, the minimum is really 3-5 years, but 7-10 years is a better time frame for fine wine investing. The client owns the assets but Cult Wines charge an annual management fee ranging from 2.75% to 2% per annum. As the value of the asset increases over time, their revenue from the management fee will increase.
They compete with Berry Bros, Bordeaux Index, Justerini & Brooks, Fine & Rare and so on, but they are selling fine wines more for consumption than investment purposes. There are some fine wine asset managers in the US, which is helping to widen the scope of people who want to invest in wine.
https://www.cultwines.com
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