A new asset-backed investment opportunity has been launched by Deepbridge Capital, offering tax-efficient access to investing in classic cars and classic supercars.
Legends of Motoring brings unrivalled expertise to a largely uncorrelated market sector that has appreciated more than many other asset classes over the last decade* and represents an alternative way to invest outside of traditional asset classes.
The aim of Legends of Motoring is to specialise in the identification, acquisition, restoration, rental, and sale of classic cars and classic supercars, typically those sought-after cars originating in the latter half of the twentieth century and early twenty-first century. It will offer sophisticated and experienced investors tax-efficient access to investing in a portfolio of cars. Full Enterprise Investment Scheme (EIS) Advance Assurance is expected.
The classic car market is potentially attractive for the high net-worth investor as it is truly global and highly complex. Valuations of classic cars have risen by nine percent in 2015** and although the market is widely recognised to be slowing, certain segments and models have still returned double digit growth. In this more complex market, the Legends of Motoring team believes it has the expertise to spot the opportunities and invest in the next must-have cars and deliver potentially higher returns.
Legends of Motoring benefits from an experienced management team with a proven track record. A key member of this team is Harry Metcalfe, who founded Evo Publications Limited, creators of specialist motoring magazine evo, and is renowned in the industry for his ability to identify areas of the market that are going to appreciate.
Harry regular writes on this subject for national newspapers including the Sunday Times and has a Youtube channel, Harry’s Garage, with over three million views and 75,000 loyal subscribers.
By identifying under-valued vehicles, in a fragmented but growing marketplace, Legends of Motoring will seek to acquire cars which are on, or ahead of, trend and which are expected to appreciate in value as a result of attentive restoration. Legends of Motoring will also provide a hire service for the likes of the film industry to maximise return for investors.
As well as offering expertise in sourcing key classic cars and classic supercars for its collection, Legends of Motoring will also offer its investors an opportunity to experience and participate in the classic car world lifestyle.
Through top-level relationships and partnerships, Legends will provide investors with exclusive access to the inner sanctum of the industry and the best motoring events.
Ian Warwick, managing partner, Deepbridge Capital, said: “At Deepbridge we have made our name by offering innovative, tax-efficient investment products partnered with management teams who possess expert knowledge in their respective sector. Deepbridge only ever invests in sectors in which our team has considerable experience, so the addition of Harry and the Legends team is invaluable.
“Our research indicates that many investors and enthusiasts would like to invest in classic cars but are nervous to pick the right models, especially as they are aware that the overall market has slowed from the rapid growth of 2013-14.
“Legends of Motoring enables investors and enthusiasts to leave these decisions to the experts and to take advantage of appreciation in values while also getting privileges in terms of access and experiences in the automotive and classic car world and events.”
Harry Metcalfe, expert car collector: “A few years ago it was possible to make serious gains in the classic car market as long as you had the money – but now it takes a real expert eye to spot the gaps and pockets in the market where cars are undervalued. That is what Legends of Motoring will bring to the market: careful and considered acquisitions.
“Classic cars are a good investment for three reasons. Firstly, they are finite. Ferrari is not making any more F40s. Secondly, there are more and more wealthy people in the world and new markets opening up. Finally, they are passion investments. They not only appreciate but are things of beauty that you can drive. They also give you a ticket into a lifestyle and a world of events and activities where you can also enjoy your investment – shares, gold bars or art don’t allow you that.”
For more information about Legends of Motoring, please contact Ray Eugeni at Deepbridge Capital LLP. Tel: 01244 746000.
