PHD Equity Partners launches the PHD Classic Car Fund
The North West private equity fund, PHD Equity Partners (“PHD”), today announces the launch of the PHD Classic Car Fund (the “Fund”), a £2.0 – £2.5 million fund investing in premium classic cars. Investors in the Fund will have the opportunity to experience the thrill of driving these rare cars, together with an investment in the tangible asset class on a portfolio basis.
PHD has launched the Fund alongside H&H Classics Limited (“H&H”), the leading specialist auction house of collectors’ motorcars and motorcycles, who will advise on the cars to be acquired by the Fund.
A small portfolio of cars is expected to be acquired with each car valued at over £300,000. Investors can enjoy the unrivalled delights of driving these cars which are expected to “qualify” for prestigious classic car rallies such Italy’s Mille Miglia. The Mille Miglia, known as “the most beautiful race in the world”, is held annually for models that originally appeared in the historic speed race.
The cars will be available to investors for use in such events through the Fund’s car club which will be operated by PHD. An investment of £200,000 is expected to entitle investors to 50 days of driving.
The structure and operations of the Fund mean that the investors are expected to be able to enjoy tax-free gains should the investments appreciate. The historic price performance of high-end classic cars has been very strong, according to the Historic Automobile Group International (“HAGI”) prices of the “Top 50” classic cars increased by 47% in 2013, on the back of a 25% increase in 2012.
The outlook for the classic car market is also further strengthened by burgeoning demand from “BRIC” nations. Growth in BRIC nation wealth will increase the demand for premium car marques, with the next logical step being a growth in interest in owning rarer classic car versions.
James Dow, Chief Executive of PHD, comments: “With demand in the classic car market showing little sign of diminishing, we are very excited to offer this unique combination of an investment fund with the opportunity to drive these truly classic cars. Investment in rare classic cars offers diversification into a tangible asset class with often excellent historic returns on investment with comparatively low levels of volatility.”
The Fund is open to UK high net worth investors who are able to contribute a minimum of £50,000.
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