I Invest €2,160 in a Batch of 7 Rolex Watches

Summary​

What I liked about this investment:

• The low minimum ticket to access this type of items
• A buyback guarantee after 9 months in the absence of a buyer for the lot.
• The possibility of delegating all the steps to a specialized and experienced company.

Possible areas for improvement:

• Receive more proactive communication, such as a mid-course email summarizing key events or upcoming ones. For example: “On December 10, the lot will be presented at an auction…”.
• Being invited to physically discover the watches to enhance the experience

Context

Yes, watches are increasingly seen as investment objects, but this only applies to certain highly sought-after models from prestigious brands. Although some pieces from these houses are still available for purchase, they are often reserved for a select clientele that has built a strong relationship with the brand through a significant purchasing history. Thus, being offered the opportunity to acquire one of these watches is already a privilege.

A privilege that grants access to something very rare in terms of investment. Indeed, these models being practically inaccessible when new, their value in the second-hand market is often much higher. This means that you realize a latent capital gain as soon as you acquire your watch.

Another factor explaining why the second-hand market sometimes exceeds the prices of new items lies in the waiting times to obtain these pieces. Similar to certain car brands like Ferrari, acquiring exclusive models such as the Patek Philippe Nautilus can require a wait of several years, sometimes up to a decade, as reported by some media outlets.

The Audemars Piguet Royal Oak, the Omega Speedmaster, and the Cartier Santos model are among the watches that, due to their high demand, have inadvertently generated significant speculation and amplified interest in these precious accessories. This situation frustrates true enthusiasts, who see opportunists, lured by the prospect of profit, driving up market prices and making the supply increasingly rare and inaccessible.

How to invest in luxury watches?

If you have looked at the prices of the previously mentioned models, you are surely wondering how you could find your place in such a competitive sector, where networking is often crucial and where the greatest fortunes compete for access. Even if you have the means to acquire one of these items, you would run the risk of concentrating all your investment on a single element.

Alternative investments, while attractive, are generally considered to be riskier than traditional investments, making diversification even more essential. It is precisely these issues that I am trying to find solutions for.

Caption Presentation

To carry out my first transaction, it was essential for me to find a trustworthy intermediary, both expert and independent. The opportunity presented itself to me unexpectedly, just as I was starting out in the field of alternative investments, by taking an interest in the Private Equity.

Caption, The platform I was using to invest in our most beautiful French start-ups began to transform its model to offer deals dedicated to exotic assets. At first, it was mainly art (Yves Klein, Yayoi Kusama, Andy Warhol, Jean Dubuffet, etc.) and watches (Rolex Daytona, Patek Philippe Aquanaut). Until that famous offer that caught my attention.

Since then, Caption has continued in this direction, gradually reducing its investment opportunities in FrenchTech start-ups to prioritize tangible asset classes. Today, the platform offers a wide range of original investments, in partnership with specialized experts. Notably, we have seen the following proposed:

• a selection of gold coins from the Middle Ages to the Renaissance, in collaboration with Numismatic, a company led by a numismatist from the Taittinger family;
• The music rights of 1,212 artist tracks, offered in partnership with Bolero ;
• financing offers for a collection of vintage vehicles managed by Mecanicus ;
• a selection of exceptional wines;
• a fleet of electric Tesla vehicles available for rent by Urban COD;
• investments in racehorses through Pur Sang Invest;
• shares of forestry groups, such as CoeurForest;

and many other equally innovative and attractive proposals.

My complete analysis of Caption

In which watches have I invested?

The offered lot consisted of 7 exceptional watches: 6 Rolex Daytona 116500LN and one Rolex GMT-Master II "Batman." Even without being an expert, this selection immediately seemed relevant to me, as these two models are rare and highly sought after. Indeed, the waiting time to hope to acquire them in-store can extend over several years, and transactions in the secondary market systematically include a premium of at least 20% compared to the retail price.

However, if this offer caught my attention much more than the similar proposals already seen on the platform, it is for two main reasons.

First, the investment horizon was particularly short: only 12 months, compared to a usual minimum of 24 months. Ideal in a watchmaking market that has been in strong correction since the beginning of 2022.

Deuxièmement, le contrat conclu entre Caption et son partenaire Toutim Invest incluait une clause, qui, en cas d’absence d’acheteur au bout de neuf mois, activait une option de rachat par l’expert avec une prime de 15 %.

Cette clause m’a stupéfait tant elle semblait irréaliste. Si je n’avais pas eu une grande confiance en Caption, j’aurais difficilement cru à une telle proposition. J’étais donc quasiment assuré de terminer cette opération dans le vert et avec un retour sur investissement considérable. Même en bourse, réaliser 15% de rendement sur une année, en étant exposé au marché américain, est une très belle performance.

Note : Avec du recul, je comprends que si le partenaire pouvait se permettre d’offrir une telle garantie, c’est qu’il était sûr d'avoir trouvé une bonne affaire. Cela illustre aussi les opportunités impressionnantes que ces marchés de collection peuvent offrir lorsqu’on combine expertise et expérience. Ces objets, au-delà de leur beauté et de leur rareté, révèlent tout leur potentiel comme actifs d’investissement alternatifs.

Features of the Rolex Daytona 116500LN

This watch is a tribute to racetracks and is designed for speed enthusiasts. It is renowned for its precision, durability, and timeless design.

Main features:​

• Material: 40 mm Oystersteel case with black Cerachrom ceramic bezel.
• Movement: Caliber 4130, automatic winding mechanical, with a power reserve of 72 hours.​
• Features: Precise chronograph and tachymeter engraved on the bezel, ideal for measuring speeds.
• Bracelet: Oystersteel, sturdy and elegant.

Particularity: High demand in the secondary market, with prices often exceeding those of new items.

Features of the Rolex GMT Master II "Batman"

Designed for modern adventurers, the GMT-Master II "Batman" embodies limitless travel with its dual time zone display and iconic bezel.

Main features:​

• Material: 40 mm Oystersteel case with a black and blue two-tone bezel nicknamed "Batman".
• Movement: Caliber 3285, automatic mechanical, with a power reserve of 70 hours.
• Features: GMT complication allowing the simultaneous display of two time zones thanks to the bi-directional 24-hour graduated bezel.
• Bracelet: Jubilee.

Feature: Highly sought after for its unique design and GMT functionality, with often long waiting times to acquire a new one.

The course of the operation

1. Caption presented the offer on its site with a brief summary of the key elements: the partner, the financing objective, the duration of bond holding, the targeted net IRR, and the minimum investment amount.
   
   
2. Several weeks later, Caption provided access to the information documents to registered users. These documents included: the presentation brochure, the President's decision regarding the issuance of Simple Bonds, the purchase agreement signed by Watch Club, Atelier SC, and Toutim Invest, and the issuance contract for the Simple Bonds.
   
   
3. In the wake of this, Caption launched the fundraising period. It was at that moment that I subscribed to the offer by making a transfer of €2,160.
   
   
4. Once the €145,000 was raised, Watch Club (the holding company of Caption) acquired the lot of watches.
   
   
5. Watch Club has entrusted the conservation and search for buyers (consignment contract) to Atelier SC.
   
   
6. Sept mois plus tard, je recevais un premier virement de 1 330,35 €. Moins de deux mois après, un second versement de 740,77 € est arrivé. Enfin, un troisième et dernier virement de 370,88 € a été effectué un mois plus tard. Au total, j’ai récupéré 2 442 €, générant un bénéfice net de 282 €, soit un rendement de +13,06 %, frais inclus.
   
   

Ce bénéfice a ensuite été déclaré aux impôts en tant que valeur mobilière. Après application de la Flat Tax (30 %), soit 84,60 €

Résultat de l'opération

Résultat final pour cette opération qui aura durée 10 mois, 197,40 € de bénéfices net de frais et de fiscalité.

Avec le recul, je me dis que j’aurais dû investir 10 fois ce montant. Mais, comme souvent, il est plus facile de penser cela une fois que tout s’est bien passé. Malgré une analyse approfondie de la plateforme et de ses fondateurs, cette opération était ma première expérience de placement privé sur Caption. Par prudence, j’ai préféré limiter mon exposition pour réduire les risques.

Since then, no other similar offer has mentioned a buyback clause with a premium. Furthermore, the minimum investment on Caption has been raised to €10,000, making these opportunities less accessible than before.

Le montage utilisé

Une des valeurs ajoutées principales de Caption réside dans leur capacité à transformer un actif physique en un actif financier accessible. Sans ce mécanisme, il serait impossible d’investir seulement 2 000 € dans une montre de cette gamme. Il serait encore plus compliqué de diversifier vos placements comme ici, en investissant simultanément dans un lot de sept montres différentes. Grâce à ce système, vous diminuez votre risque tout en déléguant la gestion, l’acquisition, la conservation et la vente à une entreprise spécialisée et expérimentée.

Pour en arriver là, Caption a créé une holding spécifiquement pour cette offre. Elle utilise cette même méthode pour chacune de ses propositions d’investissement. Grâce à ce mécanisme, elle a pu acquérir, au nom de la holding, le lot de montres d’une valeur de 145 000 € et permettre aux investisseurs intéressés de participer à ce lot en émettant 145 000 bonds à 1 € chacune. En investissant, vous devenez donc obligataire d’une société holding dédiée, dont la mission unique est l’acquisition de biens de collection. Cet investissement est qualifié “d’indirect”. Vous ne bénéficiez ainsi d’aucun droit de propriété direct sur les Rolex acquises.

Fees and taxation

Fees

Les frais liés à cette opération représentent 8 % TTC du prix d’acquisition des montres. Ces frais couvrent les dépenses annuelles ainsi que les coûts engagés par l’entreprise en charge de la conservation, du stockage, de l’assurance, et des opérations logistiques nécessaires. Le prix d’acquisition du lot de Rolex inclut également divers frais liés à leur acquisition et à leur valorisation, tels que :

• Commissions des maisons de vente aux enchères.
• Transportation costs.
• Frais de rapport de condition et d’expertise.
• Frais d’importation, de restauration et de remise à niveau.
• Assurance.
• Hedging against currency risk (for purchases outside the euro zone).
• Structuring and advisory fees.

Si la performance à la revente est supérieure au rendement visé, un carried interest (partage de la plus-value nette) pourra être perçu par l’expert, représentant entre 10 % et 20 % de la plus-value nette réalisée. En contrepartie, l’expert s’engage dans le placement privé en souscrivant entre 5 % et 10 % du montant total de l’émission.

Note : Je trouve important que nos intermédiaires soient engagés avec nous dans les opérations. Cela les incite à s’investir pleinement dans la réussite de l’opération. Dans ce cas, ils ont même un double intérêt à ce que le bénéfice soit le plus élevé possible grâce à la commission sur la performance et le fait d’être également, comme nous, un client-investisseur.

Taxation

Les revenus perçus, à savoir les 15 % de prime de remboursement, sont soumis au régime fiscal des valeurs mobilières. Pour les personnes physiques résidentes fiscales en France, ces revenus sont imposés au prélèvement forfaitaire unique (PFU) de 30 %, composé de :

• 12.8% for income tax,
• 17.2% for social contributions.

For legal entities, this income is subject to corporation tax (IS). Please note that an investment via a PEA (Plan d’Épargne en Actions) was not eligible for this operation.

Conclusion

Dans la vie, comme dans l’investissement, les véritables bonnes affaires reposent souvent sur un subtil équilibre entre une veille continue, les connaissances, la chance et la réactivité. 

Unfortunately, these opportunities are much rarer than one might think, which requires us to be extra vigilant in the face of overly attractive offers. If I decided to participate in this operation, it is primarily because I have great confidence in Caption and I took the time to analyze in detail what was being offered.

For now, no nice watch on my wrist yet, but a new great investment experience that has taught us a lot of things.

My complete analysis of Caption