bathurst · bath u rst cl ass i cs : the fund bathurst classics presents investors with an...

Copyright © 2019 Bathurst Asset Management. All Rights Reserved.

A unique investment fund accessing one of the best performing asset classes of the past decade.

BATH U RSTCLASS I CS

Remember watching your dad tinker with his pride and joy on a Saturday morning?


The Lamborghini poster you had on your wall?


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?


What about the first time you saw pop-up headlights?


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.

I N T R O D U CT I O N


BAT H U R ST C L AS S I C S :T H E F U N D

B A T H U R S T C L A S S I C S 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.


OW N E R S C L U B

B A T H U R S T C L A S S I C S 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.

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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.

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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.

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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.

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Joe MacariPartner; Asset Sourcing;

Member of the Investment Committee

Joe is globally recognisedas a leading expert in automotive asset

acquisition and valuation, and is often relied upon by major collections and auction houses.

Over the past 30 years, Joe has transacted on more than £2 billion of automotive assets

globally. He was the first person in the UK to be authorised to grant Ferrari Classiche certification, which allows him to certify

the authenticity of Ferrari vehicles. Joe Macari Performance Cars became an official Ferrari and Maserati service franchise in 2007 and

Joe’s showroom has since been home to some of the world’s most valuable and

desirable cars.

King Him Chan Partner;

Non-Executive Director

King is an Associate Director at KPMG specialising in Mergers and Acquisitions in the Power, Utilities and Infrastructure

sector. He has managed a number of funds in the past and become a expert in organising

financing for infrastructure investments in the energy, transport and social

sector. King is also highly experienced in developing innovative funding solutions

in the clean energy field, where he has led financing, refinancing and restructuring of infrastructure projects with a total capital

value in excess of £2 billion. King has a degree in Mathematics and Marketing

Management.

Maurizio FabrisPartner; Financial Structuring;

Member of the Investment Committee

Maurizio has worked inthe financial markets since 1988, dealing

in fixed income, derivatives and futures and options. During his 30 years in the industry, Maurizio has set up and led brokerage desks

with transactional value inexcess of £200 billion.Career success has enabled Maurizio to own and invest in classic and modern classic cars

since 1998, delivering returns in excess of 30% IRR over the last 10 years. He has also had the opportunity to compete in various motorsport

races, winning the 2006 Maserati Trofeo series. His participation in motorsport has enriched his

knowledge and experience of investing in this asset class.

TH E TEAM


The BATHURST CLASSICS team has an extensive global network in the Classic andModern Classic car markets, a track record of significant success investing within these

markets, and long-term experience within the financial industry.

T H E M A R K E T

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%.

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.

Luxury investment performance versus other asset classes (to Q1 2018)


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This market is home to highly desirable, older models from the likes of

Ferrari, Aston Martin and Porsche.

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Cars are usually more than 30 years old.

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Interest and demand is growing, but supply remains the same.

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Cars in this segment command increasingly high prices, with some fetching

over £50 million.

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Demand is expected to continue to outstrip supply;

therefore the opportunity to buy is waning.

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C L AS S I C CA R S


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The reduced supply of Classic Cars has led investors

to chase limited-run Modern Classics as

an alternative.

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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.

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This growing interest from investors has driven

prices up and should continue to do so.

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M O D E R N C L AS S I C S


Short-term hold

25% of the collection will be held for between one and three years.

B A T H U R S T C L A S S I C S believes that the Fund will benefit from spikes

in asset valuation. These opportunities assist in driving returns and

generating liquidity.

Medium-term hold

50% of the collection will be held for between three and seven years.

B A T H U R S T C L A S S I C S believes this element of the strategy will allow the Fund to achieve strong

appreciation prior to the asset valuation plateauing. This element also

assists the short-term hold strategy in driving returns and capturing

capital growth.

Long-term hold

25% of the collection will be held for the duration of the Fund. This strategy will form the foundation of the Fund. Cars in this category will have iconic backgrounds and become a beautiful

part of the Fund’s collection. The partners believe that these will continue to appreciate even beyond

the life of the Fund.

Opportunistic selling

Markets for individual cars can become positively distorted in the

short-term (entrance of new collector, car featured in successful film or

an unexpected auction result) and the Fund will capitalise on these

opportunities as they arise.

I N V E ST M E N T ST R AT E GY

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.


Key factors in sourcing:

Buy privately (avoid auction

premiums)

Look for distress sales or estate

turnovers

Find cars trading at discount that require

mild restoration

Take opportunities offered

to the Fund

S O U R C I N G A N D 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.

B A T H U R S T C L A S S I C S 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.


T R AC K R E C O R D

To the right is a list of asset investments made by the partners

at B A T H U R S T C L A S S I C S , who share a 25-year

track record of transacting on more than £2 billion of automotive

assets globally.|

They have advised high net worth individuals on separate managed accounts,

as well as building their own personal classic car collections.

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They have achieved a 2.3 cash multiple and a gross IRR of over 20%

on their own portfolios, whilst returns generated on behalf of

separate managed accounts are significantly higher.

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The partners are now considered leading experts in asset

valuation and investment advice.

NB: information on separate managed accounts is private and confidential.

Please note financial data contained in this table has not been independently audited.

Asset investments by the partners at Bathurst Classics

Alfa Romeo 8C CoupeAlfa Romeo 8C CoupeAlfa Romeo 8C SpiderAMG-Mercedes SLS ConvertibleBMW Z8Bugatti EB110 GTFerrari 246 GTSFerrari 250 California Spider SWB Ferrari 250 GT SWBFerrari 275 GTB/4Ferrari 275 GTSFerrari 275 GTSFerrari 288 GTOFerrari 308 GTB VetroresinaFerrari 355 GTS F1Ferrari 512BBFerrari 550 BarchettaFerrari Daytona CoupeFerrari Daytona SpiderFerrari EnzoFerrari F40Ferrari F40Ferrari F50Ferrari 458 SpecialeLamborghini Miura P400Lamborghini Miura P400Lamborghini Miura SVLancia Delta Integrale Evo IILancia Delta Integrale Evo IIMaserati MC12 StradaleMaserati MC12 StradaleMcLaren F1 GTRMercedes 300SL RoadsterPagani Zonda F RoadsterPorsche 356 SpiderPorsche Carrera GT

Nov-14Aug-14Nov-13Aug-17Oct-15May-13Oct-05Jul-12Jun-13Oct-15Aug-12Nov-09Jan-08Mar-08Jan-10Feb-13Apr-09Jul-10Jul-10Nov-12Mar-12Jul-10Feb-10Aug-18Mar-13Apr-11Nov-12Aug-16Oct-14Aug-14Sep-11Mar-08Jun-08Oct-13Oct-09Mar-12

£130,000£100,000£130,000£130,000£130,000£275,000£40,000£4,800,000£1,700,000£1,800,000£350,000£350,000£200,000£40,000£35,000£125,000£100,000£220,000£700,000£650,000£285,000£180,000£350,000£230,000£400,000£500,000£800,000£30,000£30,000£800,000£550,000£2,000,000£300,000£1,000,000£50,000£300,000

£185,000£180,000£180,000£180,000£190,000£575,000£300,000£14,400,000£5,800,000£2,200,000£525,000£500,000£650,000£110,000£95,000£200,000£300,000£600,000£2,300,000£1,100,000£800,000£280,000£1,100,000£250,000£510,000£900,000£1,700,000£65,000£60,000£1,450,000£1,700,000£4,500,000£1,100,000£2,100,000£125,000£600,000

Jan-18Apr-17Nov-14Dec-18Aug-18May-18Apr-17Sep-17Nov-17Mar-18Mar-13May-11Oct-13Jan-15Dec-18Aug-14Aug-15Jun-16Oct-17Feb-16Feb-17Jun-12Oct-16Dec-18Mar-14Feb-17Feb-17Dec-18May-18Nov-16Jun-17Sep-13Jul-18Apr-18Jun-14May-17

£4,018£2,666£1,403£1,628£3,579£13,984£4,603£248,285£75,173£43,496£2,033£5,236£11,671£2,769£3,122£1,777£6,419£13,031£50,803£21,138£14,250£3,309£23,627£769£4,329£29,219£34,630£700£1,075£18,674£31,644£110,137£30,510£44,192£2,334£15,510

13%29%35%30%16%20%55%38%54%8%85%28%38%24%18%41%30%28%30%20%35%29%31%25%24%13%25%49%27%34%35%22%25%24%31%18%

1.392x1.773x1.374x1.372x1.434x2.040x7.385x2.948x3.368x1.198x1.494x1.414x3.192x2.681x2.625x1.586x2.936x2.668x3.213x1.660x2.757x1.537x3.075x1.084x1.264x1.742x2.082x2.143x1.964x1.789x3.033x2.195x3.565x2.056x2.453x1.948x

Asset

Total Fund Returns £19,780,000 £47,685,000 2.3x

Date Acq

uired

Investm

ent

Date Rea

lised

Realis

ed

CostsIRR Cas

h Multip

le


Investment, Policy, Strategy and Restriction

Target Fund Size

Minimum Commitment

Final Closing Date

Investment Period

Fund Term

Management Fee

Preferred Return

Carried Interest

The Fund’s investment objective is to create capital growth by acquiring assets for short, medium and long term holds.

GBP 300,000,000

GBP 100,000

No later than seven years from the First Closing Date, unless otherwise approved by the Advisory Committee.

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.

The Fund will terminate on the tenth anniversary of the First Closing Date, unless extended for up to two additional one-year periods.

2% p.a. of Net Asset Value.

8% p.a. on any Commitments which have been drawn down and not yet repaid, compounded annually in arrears.

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.

I N V E ST M E N T ST R AT E GY A N D O B J E CT I V E S


D I S C L A I M E R

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.


bathurst · bath u rst cl ass i cs : the fund bathurst classics presents investors with an...

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