The Australian-based International Wine Investment Fund (IWIF) is to invest $2.5m in the UK wine distributor, Vinoceros Ltd, through a combination of ordinary shares and convertible loan stock.

Vinoceros is the exclusive UK distributor for the Brian McGuigan brands produced by McGuigan Simeon Wines Ltd, the company created by the recent merger of McGuigan and Simeon. The company also distributes the South African wine, Arniston Bay, as well as other brands from Argentina, Chile, and California.

"This is the third distribution investment we have made in Europe and is a further step in the wine fund's philosophy of investing across the global wine industry," said Chris Day, chief executive of Berren Asset Management Ltd which controls the fund.