PHD Equity Partners launches classic car fund

PHD Equity Partners, the private equity fund set up by corporate finance boutique Dow Schofield Watts, is raising up to £2.5m for a classic car fund.

The Daresbury-based outfit is hoping to rev-up demand for its maiden PHD Classic Car Fund, which is seeking a minimum of £50,000 investment from high-net worth backers  to investing in premium classic cars.

PHD said investors 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.
 
It has teamed up with H&H Classics Limited, a specialist auction house of collectors’ motorcars and motorcycles, which 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 driving these cars which are expected to “qualify” forclassic car rallies such Italy’s Mille Miglia. T
 
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.
 
James Dow, chief executive of PHD, said: “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.”

PHD says the “structure and operations” of the fund mean that investors are expected to be able to enjoy tax-free gains should the value of the cars increase. The historic price performance of high-end classic cars has been very strong. According to the Historic Automobile Group International  prices of the “Top 50” classic cars increased by 47% in 2013, on the back of a 25% increase in 2012.