A unique investment fund accessing one of the best performing asset classes of the past decade.
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
B AT H U R S T
C L AS S I C S
A unique investment fund accessing one of the best performing asset classes of the past decade.
Copyright © 2019 Bathurst Asset Management. All Rights Reserved.
Copyright © 2019 Bathurst Asset Management. All Rights Reserved.
Remember watching your dad tinker with his pride and joy on a Saturday morning?
Copyright © 2019 Bathurst Asset Management. All Rights Reserved.
The Lamborghini poster you had on your wall?
Copyright © 2019 Bathurst Asset Management. All Rights Reserved.
Magnum PI and Sonny Crockett’s Ferraris? James Bond and his Aston Martins?
Or the car you left your wedding in, with your partner by your side?
Copyright © 2019 Bathurst Asset Management. All Rights Reserved.
What about the first time you saw pop-up headlights?
Copyright © 2019 Bathurst Asset Management. All Rights Reserved.
INTRODUCTION
As we journey through life, cars remain a constant.
They remind us of our past, our heritage. They link us to loved ones,
events and periods of our lives that define the person we have become.
Most of our memories have a car there, somewhere. ¶ Methods of building
cars have changed, new legislation has forced certain designs to be retired
and their sometimes ground-breaking innovations have been improved
upon but not forgotten. ¶ For those that can afford it, owning one of those
cars can be hard to resist. Over the last couple of decades, a combination
of mechanical innovation, sentimental appreciation and soaring global
wealth has driven investment in the classic and modern classic car market,
with the increase in values outperforming nearly every other asset class.
Copyright © 2019 Bathurst Asset Management. All Rights Reserved.
B AT H U R S T C L A S S I C S :
THE FUND
BATHURST CLASSICS presents investors
with an opportunity to pool their resources
and build a prized collection of incredible cars,
all whilst offering capital appreciation that
competes with the very best asset classes.
Although the prime objective of the Fund is to
generate Net Asset Value increases, this
is a chance not only to aspire to healthy
investment returns, but also to grab a slice of
automotive history. Your chance to know that
these cars belong, in part, to you.
Our experienced investment team will source
unique opportunities in the market, which
should continue to appreciate in value for the
duration of the Fund. In addition,
when a car is flagged as a strong buy, multiples
will be purchased. This strategy reflects
investment methodology that is commonplace
in the financial market, but hardly ever
used by collectors.
Copyright © 2019 Bathurst Asset Management. All Rights Reserved.
|
Upon acquisition,
B A T H U R S T C L A S S I C S will show-
case the cars at private events,
where investors will be invited to
enjoy their beauty close up.
|
When deemed beneficial,
the cars will be displayed at
events such as the Concours of
Elegance at Hampton Court
and the Goodwood Festival
of Speed, where they will gain
prestige and investors will
enjoy their position as owners
within the Fund.
|
B A T H U R S T C L A S S I C S will
regularly update investors with
news and information relating
to each car, as well as releasing
current valuations, through
the Fund’s website and mobile
application.
|
OW N E R S CLUB
BATHURST CLASSICS investors will become members of an
exclusive club where not only will they benefit from the returns
these cars generate, but will also participate in their history.
Copyright © 2019 Bathurst Asset Management. All Rights Reserved.
THE TEAM
The BATHURST CLASSICS team has an extensive global network in the Classic and
Modern Classic car markets, a track record of significant success investing within these
markets, and long-term experience within the financial industry.
Joe Macari Maurizio Fabris King Him Chan
Partner; Asset Sourcing; Partner; Financial Structuring; Partner;
Member of the Investment Committee Member of the Investment Committee Non-Executive Director
Joe is globally recognised Maurizio has worked in King is an Associate Director at KPMG
as a leading expert in automotive asset the financial markets since 1988, dealing specialising in Mergers and Acquisitions
acquisition and valuation, and is often relied in fixed income, derivatives and futures and in the Power, Utilities and Infrastructure
upon by major collections and auction houses. options. During his 30 years in the industry, sector. He has managed a number of funds
Over the past 30 years, Joe has transacted Maurizio has set up and led brokerage desks in the past and become a expert in organising
on more than £2 billion of automotive assets with transactional value inexcess of £200 billion. financing for infrastructure investments
globally. He was the first person in the UK Career success has enabled Maurizio to own in the energy, transport and social
to be authorised to grant Ferrari Classiche and invest in classic and modern classic cars sector. King is also highly experienced in
certification, which allows him to certify since 1998, delivering returns in excess of 30% developing innovative funding solutions
the authenticity of Ferrari vehicles. Joe Macari IRR over the last 10 years. He has also had the in the clean energy field, where he has led
Performance Cars became an official Ferrari opportunity to compete in various motorsport financing, refinancing and restructuring of
and Maserati service franchise in 2007 and races, winning the 2006 Maserati Trofeo series. infrastructure projects with a total capital
Joe’s showroom has since been home to some His participation in motorsport has enriched his value in excess of £2 billion. King has
of the world’s most valuable and knowledge and experience of investing in this a degree in Mathematics and Marketing
desirable cars. asset class. Management.
Copyright © 2019 Bathurst Asset Management. All Rights Reserved.THE MARKET
The Classic and Modern Classic Car market has enjoyed
substantial gains over the last decade. Knight Frank Luxury
Investment Index calculates a rise of almost 334%. Luxury investment performance versus other asset classes (to Q1 2018)
The editor of Classic & Sports Car™ Magazine, Greg
MacLeman, estimates that this sector is worth £5.5 billion
to the British economy alone. Within the next ten
years he expects the most exotic models, from the likes
of Ferrari, Maserati and Jaguar, to reach values
greater than £40 million.
The market is driven by passion and desire and has
become a legitimate asset class. Historically price has been
a significant barrier to entry for all but the rich
and super-rich. B A T H U R S T C L A S S I C S provides an accessible
financial entry point along with professional
management of the assets.
These assets are uncorrelated with conventional
investments. B A T H U R S T C L A S S I C S believes that they will
continue to offer investment opportunities during
the Fund’s investment period and that they will
continue to be seen as attractive by the investor community
at the time of exit.
Copyright © 2019 Bathurst Asset Management. All Rights Reserved.C L AS S I C CA R S
|
This market is home
to highly desirable, older
models from the likes of
Ferrari, Aston Martin
and Porsche.
|
Cars are usually more than
30 years old.
|
Interest and demand is
growing, but supply
remains the same.
|
Cars in this segment
command increasingly high
prices, with some fetching
over £50 million.
|
Demand is expected to
continue to outstrip supply;
therefore the opportunity
to buy is waning.
|
Copyright © 2019 Bathurst Asset Management. All Rights Reserved.|
The reduced supply of
Classic Cars has led investors
to chase limited-run
Modern Classics as
an alternative.
|
This segment includes
the Ferrari Enzo,
Porsche Carrera GT and
Maserati MC12, as well as
more affordable
cars such as the
Mercedes McLaren SLR,
Alfa Romeo 8C,
BMW Z8 and
Lancia Delta Integrale.
|
This growing interest from
investors has driven
prices up and should continue
to do so.
|
MODERN C L AS S I C S
Copyright © 2019 Bathurst Asset Management. All Rights Reserved.INVESTMENT S T R AT E G Y
Growth trajectories in the Classic and Modern Classic markets are
linked to each vehicle’s heritage, provenance and rarity.
Non-tangible factors, such as desirability and nostalgia, determine how
quickly values rise. The Fund aims to capture this mood by having
front-line access to upcoming trends.
Short-term hold Long-term hold
25% of the collection will be held for 25% of the collection will be held for
between one and three years. the duration of the Fund. This strategy
B A T H U R S T C L A S S I C S believes that will form the foundation of the Fund.
the Fund will benefit from spikes Cars in this category will have iconic
in asset valuation. These opportunities backgrounds and become a beautiful
assist in driving returns and part of the Fund’s collection.
generating liquidity. The partners believe that these will
continue to appreciate even beyond
the life of the Fund.
Medium-term hold
50% of the collection will be held Opportunistic selling
for between three and seven years.
B A T H U R S T C L A S S I C S believes Markets for individual cars can become
this element of the strategy will positively distorted in the
allow the Fund to achieve strong short-term (entrance of new collector,
appreciation prior to the asset valuation car featured in successful film or
plateauing. This element also an unexpected auction result) and
assists the short-term hold strategy the Fund will capitalise on these
in driving returns and capturing opportunities as they arise.
capital growth.
Copyright © 2019 Bathurst Asset Management. All Rights Reserved.SOURCING AND
TA R G E T R E T U R N S
The investment team has developed extensive
global relationships that will enable
B A T H U R S T C L A S S I C S to source investment
opportunities directly and the partners
have a proven track record of sourcing cars that
are not available on the open market.
B A T H U R S T C L A S S I C S intends to actively, but
selectively, pursue their investment strategy
from within their network.
BATHURST CLASSICS aims to generate
returns through capital gain. The Fund aims to
deliver over 20% gross IRR to investors
and a cash multiple of over 2 times over the life of
the Fund, although there can be no assurance
that this target will be met.
Key factors Buy privately Look for distress Find cars trading Take opportunities
in sourcing: (avoid auction sales or estate at discount that require offered
premiums) turnovers mild restoration to the Fund
Copyright © 2019 Bathurst Asset Management. All Rights Reserved.Asset investments by the partners at Bathurst Classics
d
d
le
re
e
tip
lis
T R AC K REC O RD
t
ui
en
ul
cq
ea
d
m
M
e
R
A
lis
st
ts
h
Asset
e
e
ve
os
ea
as
R
at
at
IR
In
D
D
R
C
C
Alfa Romeo 8C Coupe Nov-14 £130,000 Jan-18 £185,000 £4,018 13% 1.392x
Alfa Romeo 8C Coupe Aug-14 £100,000 Apr-17 £180,000 £2,666 29% 1.773x
Alfa Romeo 8C Spider Nov-13 £130,000 Nov-14 £180,000 £1,403 35% 1.374x
To the right is a list of asset AMG-Mercedes SLS Convertible Aug-17 £130,000 Dec-18 £180,000 £1,628 30% 1.372x
BMW Z8 Oct-15 £130,000 Aug-18 £190,000 £3,579 16% 1.434x
investments made by the partners
Bugatti EB110 GT May-13 £275,000 May-18 £575,000 £13,984 20% 2.040x
at B A T H U R S T C L A S S I C S , Ferrari 246 GTS Oct-05 £40,000 Apr-17 £300,000 £4,603 55% 7.385x
who share a 25-year Ferrari 250 California Spider SWB Jul-12 £4,800,000 Sep-17 £14,400,000 £248,285 38% 2.948x
Ferrari 250 GT SWB Jun-13 £1,700,000 Nov-17 £5,800,000 £75,173 54% 3.368x
track record of transacting on more Ferrari 275 GTB/4 Oct-15 £1,800,000 Mar-18 £2,200,000 £43,496 8% 1.198x
than £2 billion of automotive Ferrari 275 GTS Aug-12 £350,000 Mar-13 £525,000 £2,033 85% 1.494x
assets globally. Ferrari 275 GTS Nov-09 £350,000 May-11 £500,000 £5,236 28% 1.414x
Ferrari 288 GTO Jan-08 £200,000 Oct-13 £650,000 £11,671 38% 3.192x
| Ferrari 308 GTB Vetroresina Mar-08 £40,000 Jan-15 £110,000 £2,769 24% 2.681x
Ferrari 355 GTS F1 Jan-10 £35,000 Dec-18 £95,000 £3,122 18% 2.625x
They have advised high net worth Ferrari 512BB Feb-13 Aug-14 £1,777 1.586x
£125,000 £200,000 41%
individuals on separate managed accounts, Ferrari 550 Barchetta Apr-09 £100,000 Aug-15 £300,000 £6,419 30% 2.936x
as well as building their own personal Ferrari Daytona Coupe Jul-10 £220,000 Jun-16 £600,000 £13,031 28% 2.668x
Ferrari Daytona Spider Jul-10 £700,000 Oct-17 £2,300,000 £50,803 30% 3.213x
classic car collections. Ferrari Enzo Nov-12 £650,000 Feb-16 £1,100,000 £21,138 20% 1.660x
| Ferrari F40 Mar-12 £285,000 Feb-17 £800,000 £14,250 35% 2.757x
Ferrari F40 Jul-10 £180,000 Jun-12 £280,000 £3,309 29% 1.537x
They have achieved a 2.3 cash Ferrari F50 Feb-10 £350,000 Oct-16 £1,100,000 £23,627 31% 3.075x
multiple and a gross IRR of over 20% Ferrari 458 Speciale Aug-18 £230,000 Dec-18 £250,000 £769 25% 1.084x
Lamborghini Miura P400 Mar-13 £400,000 Mar-14 £510,000 £4,329 24% 1.264x
on their own portfolios, Lamborghini Miura P400 Apr-11 £500,000 Feb-17 £900,000 £29,219 13% 1.742x
whilst returns generated on behalf of Lamborghini Miura SV Nov-12 £800,000 Feb-17 £1,700,000 £34,630 25% 2.082x
separate managed accounts are Lancia Delta Integrale Evo II Aug-16 £30,000 Dec-18 £65,000 £700 49% 2.143x
Lancia Delta Integrale Evo II Oct-14 £30,000 May-18 £60,000 £1,075 27% 1.964x
significantly higher. Maserati MC12 Stradale Aug-14 £800,000 Nov-16 £1,450,000 £18,674 34% 1.789x
| Maserati MC12 Stradale Sep-11 £550,000 Jun-17 £1,700,000 £31,644 35% 3.033x
McLaren F1 GTR Mar-08 £2,000,000 Sep-13 £4,500,000 £110,137 22% 2.195x
The partners are now considered Mercedes 300SL Roadster Jun-08 £300,000 Jul-18 £1,100,000 £30,510 25% 3.565x
leading experts in asset Pagani Zonda F Roadster Oct-13 £1,000,000 Apr-18 £2,100,000 £44,192 24% 2.056x
Porsche 356 Spider Oct-09 £50,000 Jun-14 £125,000 £2,334 31% 2.453x
valuation and investment advice. Porsche Carrera GT Mar-12 £300,000 May-17 £600,000 £15,510 18% 1.948x
Total Fund Returns £19,780,000 £47,685,000 2.3x
NB: information on separate managed accounts is private and confidential.
Please note financial data contained in this table has not been independently audited.
Copyright © 2019 Bathurst Asset Management. All Rights Reserved.INVESTMENT S T R AT E G Y AND OBJECTIVES
Investment, Policy, Strategy The Fund’s investment objective is to create capital growth by acquiring assets
and Restriction for short, medium and long term holds.
Target Fund Size GBP 300,000,000
Minimum Commitment GBP 100,000
Final Closing Date No later than seven years from the First Closing Date, unless otherwise
approved by the Advisory Committee.
Investment Period From the First closing Date until the date which is seven years following the Final Closing Date,
unless extended for an additional one-year period if approved by the Advisory Committee.
Fund Term The Fund will terminate on the tenth anniversary of the First Closing Date,
unless extended for up to two additional one-year periods.
Management Fee 2% p.a. of Net Asset Value.
Preferred Return 8% p.a. on any Commitments which have been drawn down and not yet repaid,
compounded annually in arrears.
Carried Interest 20% of the distributable proceeds of the Fund which exceed an amount equal to investors’
drawn down Commitments, subject to the Preferred Return being achieved.
Copyright © 2019 Bathurst Asset Management. All Rights Reserved.DISCLAIMER
THE CONTENT OF THIS PROMOTION HAS NOT BEEN APPROVED BY AN AUTHORISED PERSON WITHIN THE MEANING OF THE FINANCIAL SERVICES AND MARKETS ACT 2000. RELIANCE ON THIS PROMOTION
FOR THE PURPOSE OF ENGAGING IN ANY INVESTMENT ACTIVITY MAY EXPOSE AN INDIVIDUAL TO A SIGNIFICANT RISK OF LOSING ALL OF THE PROPERTY OR OTHER ASSETS INVESTED.
IF YOU ARE IN ANY DOUBT ABOUT THE CONTENTS OF THIS PRESENTATION YOU SHOULD CONTACT YOUR FINANCIAL ADVISER, STOCKBROKER, BANK MANAGER, LAWYER, ACCOUNTANT OR A PERSON
AUTHORISED UNDER THE FINANCIAL SERVICES AND MARKETS ACT 2000 AND WHO SPECIALISES IN ADVISING ON INVESTING IN COLLECTIVE INVESTMENT SCHEMES AND ALTERNATIVE INVESTMENT FUNDS.
Copyright © 2019 Bathurst Asset Management. All Rights Reserved.You can also read
