When he isn’t busy being the drummer for Pink Floyd, Nick Mason is an avid classic and luxury auto enthusiast. Mason is on an advisory board of IGA Automobile LP, an investment group that is interested in purchasing $150 million worth of classic and exotic cars to gain a 15% ROA. It is possibly the first classic-car fund that is poised for returns, rather than a passion for automobiles.
Mason has a passion for fast cars, luxury cars and likely exotic rental cars when traveling and has competed in the Le Mans 24 Hours race five times, and is likely not short on cash, so this is a surprising move. In his garage lurk the likes of Ferrari, Porsche 962, Bentley, Aston Martin, Jaguar, and Bugatti. A new machine, indeed.
Investors will commit a minimum of $500,000, and over a three-year period, a trophy collection of 20-40 classic cars will be collected. The classic cars, or ‘acquisition targets’ the investors are seeking are distinguished by racing or ownership histories, iconic cars with low series production. Some of the targets on the list are the Ferrari 250 GTO, Aston Martin DB4 Zagato, Ford GT40 McLaren F1, Shelby Daytona coupe and the Porsche 918.
There certainly seems to be a method to the madness, as a Ferrari GTO from a production line of just 36 units sold for $26 million at a private auction. Once acquired, the rare classic cars will be displayed at auto shows including the Pebble Beach Concours d’Elegance and the Grand Prix de Monaco Historique, though none of the cars will be raced, to prevent a repeat of the Most Expensive Exotic Car Crash Ever. The investment group also intends to place the collection on display in Asia, mentioning that China and India are not huge players in the classic cars at the moment, but that trend may change. With the luxury car market on fire in China and India, I can understand this strategy.
Investors are also required to pay a placement fee of up to 3 percent of their total investment and annual management fees of around 1.5 percent. If you are not interested in excessive fees and a long wait for a return on an investment, you can always just indulge in one of our luxury exotic rental cars and leave the maintenance and fees to us!
Mason, Shine on you crazy diamond.
Post by Imagine Lifestyles Luxury Rentals