3. Rarity creates value and appreciation
“This year, vintage cars were the
best-performing alternative asset
class tracked by Bloomberg...”
(Source: Bloomberg, November 2015)
Participation in this investment is only suitable for those persons who would qualify as
either Professional or high net worth Clients or Eligible Counterparties under Financial
Conduct Authority Rules; please see page 15 for more details. This document is not an
invitation to invest; investors should refer to the pre-close Investment Memorandum prior
to making any investment decisions.
4. EXECUTIVE SUMMARY
“Cars will be sourced globally, restored and
then sold in the most appropriate market to
maximise the return.”
Rare Metal is a specialist classic car
trading and restoration business which
expects to provide returns in excess of
10% per annum through opportunistically
sourcing the rarest and most desirable
classic cars, restoring and trading them
at a profit.
Rare Metal’s team has well over 100 years
of combined experience in classic cars and
historic race cars.Through this experience,
Rare Metal is able to utilise its network
to locate the world’s most interesting and
unique cars, restore them and sell to the
most profitable market.
5. SUMMARY OF TERMS
Structure UK Ltd under EIS
Minimum Investment £ 100,000
Maximum Investment (per Tax Year) £ 1,000,000
Lockup 3 years
Overheads Charged at cost
Target return 10% per annum
Performance-Based Incentive Payable to Management Company 35% of profits
Income Tax Relief 30%
Capital Gains on Shares (after 3 years) Zero
An equivalent loss could reduce investor tax by up to 45%
Benefit of Investing via the Enterprise Investment Scheme (EIS)
An Example:
EIS Scheme Non-EIS Scheme
Initial investment £ 100,000 £ 100,000
30% income tax relief at time of investment1
£ 30,000 -
Annual return (net) 10 % 10 %
Return on investment after 3 years2
£ 30,000 £ 30,000
Capital gain on disposal - (£ 8,400)
Net Return to the Investor After 3 Years3
£ 160,000 £ 121,600
Total Net Gain 60 % 22 %
1
assuming sufficient taxable income to absorb full relief
2
assuming 10 % net growth p.a. no compounding
3
includes tax relief at 30%
Note, the above analysis excludes potential inheritence tax benefits.
7. Kidston K500
The Kidston K500 Index is a benchmark
market data provider for the classic car
sector. It maintains a list of 500 of the
world’s most important classic cars and
includes all major auction results for
these since 1994 (over 30,000 results).
The Index has shown a 68% growth in
the average auction values over the last
5 years.
Knight Frank
“…a study published in March by
property firm Knight Frank …
estimated that art pieces had risen by
252pc in a decade, beaten only by
classic car values, up by 487pc.”
(Source: The Telegraph, 2015)
HAGI
HAGI (Historic Automobile Group
International) reported its Top 50 index
of exceptional historic automobiles was
up 16.57% in 2015.
(Source: HAGI, 2016)
8. INVESTMENT STRATEGY
“We believe select cars currently valued
between £100-250k have the greatest
potential for growth.”
Current market conditions allow for
above average returns to be made from
selective rare, historically important or
unique cars.The top end of the market
has already achieved significant growth,
which is in the process of stabilising.
Two such examples are the 1973 Porsche
911 Carrera RS 2.7 and Mercedes
300SL ‘Gullwing’ from the mid-1950s.
Capital will be deployed to build a
diverse portfolio of cars. We maintain
a database of cars we have identified
which we expect will perform well in the
near term. In addition, we have access to
several private collections which are not
on the market.
9. We expect the majority of vehicles
we source to require some level of
restoration. Some will require minor
remedial work to ensure originality and
others will be ‘barn-finds’ requiring
complete restoration.
All vehicles will be prepared to achieve
maximum returns upon sale. All work
and quality control will be overseen by
our Technical Advisors to ensure the cars
are the best on the market and thereby
maximising the return.
“Our network contains some of the
world’s top classic car restorers and race
car preparation specialists.”
10. INVESTMENT PROCESS
VEHICLE PURCHASING
Full market data analysis
from multiple sources
Restoration work carried
out where appropriate
Vehicle Acquired
Presentation made to the
Advisory Board
Future value projected by
analysis of market data and
model history
11. Presentation made to the
Advisory Board
PR to increase market awareness
before sale
Optimum sale method decided based upon
market performance, for example:
• Auction
• Private sale
• Direct to trade
VEHICLE SELLING
Vehicle Sold
12. MANAGEMENT TEAM
Tristan Last – Managing Director
Tristan races vintage and classic cars and
has his own private car collection. He has
almost a decade’s experience in the alternative
investment industry and is now fusing this
with his passion for classic cars.
Tristan is managing the day-to-day
operations.
Greg Thain – Chairman
Greg has 40 years’ commercial experience
as an entrepreneur and fund raiser.
He has built up and sold an extensive
portfolio of companies in the UK and in
emerging markets.
Greg is responsible for strategy and
international markets.
Richard Last – Technical Director
Richard has almost 50 years’ experience as
an engineer and built a business providing
services to F1, World Rally and endurance
race car teams and manufacturers. He also
races vintage and historic sports cars.
Richard is responsible for overseeing all
restoration work.
Thomas Rassmuson – Commercial Advisor
Thomas has over 22 years of business
experience working in investment banking
and fund management. His experience
includes co-founding a specialist trading and
investment firm, CF Partners, Merrill Lynch
and AGA treasury.
Thomas is responsible for supporting the
business on commercial-related issues.
Jonathan Navon – Risk Advisor
Jonathan has over 23 years of experience
in financial markets and risk management.
His experience includes co-founding a
specialist trading and investment firm,
CF Partners, Goldman Sachs, Deutsche Bank
and Merrill Lynch.
Jonathan is responsible for supporting the
business on risk management related issues.
13. ADVISORY BOARD
Julian Bronson: Multiple Monaco Historic Grand Prix and Goodwood Revival winner
Chris Clarkson: Collector and 18 years’ historic race car experience
Tony Ditheridge: Restorer of WWII fighter planes and classic racing cars
Chip Starr: US agent brokering classic cars to the UK and worldwide
James Mitchell: Classic car dealer, journalist and commentator
David Wenman: Retired Investment Banker and classic car collector.
15. DISCLAIMER
This document is issued by CF Partners (UK) LLP
(‘CF Partners’), which is authorised and regulated by the
Financial Conduct Authority ('FCA'), Firm Reference
Number 463878.The contents are approved for publication
to Professional Clients and Eligible Counterparties resident
in the UK and as defined by FCA Rules.These types of
clients have the knowledge and experience required in order
to understand the investment risks applicable to the type of
investment described in this document. As such, available
protections under FCA Rules are greatly reduced.
If potential investors have any doubt as to whether they
would be classified as either Professional Clients or Eligible
Counterparties, or if they have any doubts that the type of
investment described in this document is suitable for them,
they should seek independent advice.
The performance information contained in this document
reflects the most-up-to-date data available at the time of
publication and is made on the basis of publicly available
information or on sources believed by CF Partners to be
reliable. However, CF Partners does not make any guarantee
as to the accuracy or completeness of any such information
and is not liable for any discrepancies or inaccuracies.
The shares in the investment described are not dealt in or on
a recognised or designated investment exchange, nor is there
a market maker in the shares. Liquidity is therefore limited
and it may be difficult for an investor to dispose of shares
otherwise than by way of redemption.
The investment described herein is speculative and
performance may be volatile. Returns are estimated and
subject to change. Past performance is not a reliable indicator
of future performance.The value of the investment may go
down as well as up, and investors may not get back all or any
of the amount originally invested.
