Qualified investors can now invest in a curated fleet of world-renowned vehicles
NEW YORK–(BUSINESS WIRE)–Drift Capital, L.L.C. (“Drift Capital”) an alternative asset manager providing fractional investments in a diversified portfolio of collectible automobiles, announced today the launch of its inaugural Drift Capital Fund I, L.P. (the “Drift Fund” or “Fund”). The closed-end Drift Fund, the first of its kind made available in the United States, offers accredited and institutional investors the opportunity to invest in a collection of some of the most remarkable automobiles ever made—both contemporary and classic.
“We are thrilled to unveil Drift Capital and our first Fund to the world,” says Eden J. L. Cooper, CFA, Managing Partner of Drift Capital. “Collectible cars have historically been uncorrelated to other asset classes, holding their value through market downturns while providing substantial returns over time. Our goal is to unlock, capture, and maximize these portfolio-enhancing attributes for our investors.”
Drift Capital’s core strategy centers around exposure to a diversified portfolio of blue-chip automobiles that have a 20-year track record of outperformance: the Drift Automotive Returns Composite (DARC). The DARC was constructed to ensure that most of the Fund’s investments are in cars that have demonstrated demand, liquidity, and no significant declines in value through multiple economic cycles. This data-driven approach to portfolio construction underpins Drift Capital’s uncompromising standards in due diligence and risk management.
The market for collectible cars has grown dramatically in the past 40 years, surpassing $4.3 billion in sales at collector car auctions in 2022 according to insights from automotive data provider Classic.com. The trend looks to continue in 2023 as a record 1,220 cars sold during Monterey Car Week, surpassing $400 million in auction sales.
However, determining which cars to invest in, and at what price, requires esoteric insight. Exacerbated by the logistical complexities of storing, maintaining, and insuring collector automobiles, investors have been unable to access these alternative investments. Drift Capital has solved for these barriers, engaging in-house automotive and investment expertise.
Drift Capital’s advisory board includes Paul Kimball, a former Morgan Stanley executive who was also Chairman of the Foreign Exchange Committee, a global industry association established by the Federal Reserve Bank of New York. The advisory board also includes Nilam Patel, Portfolio Manager of MKP Capital, and Michael Ricciardi, co-founder and chairman emeritus of Mercury Capital Advisors.
Says Paul Kimball: “Real, physical assets have become a necessary element in building a global portfolio that is sustainable over the long-term. Drift Capital, with their sole focus on investing in automobiles, offers an efficient, highly curated offering to a new sector of the physical asset universe.
“The Drift Capital team has assembled a deep array of resources and expertise that enables access to this unique access class, outperforming over multiple market cycles and serving as a diversifying element to any holistic investment strategy.”
About Drift Capital
Drift Capital is an asset management firm providing fractional investments in a diversified portfolio of collectible automobiles. Positioned at the axis of automotive and alternative investing expertise, Drift Capital’s Fund I enables investors to achieve exposure to a fleet of world-renowned vehicles. The Fund is available to qualified accredited and institutional investors. More information can be found at driftcapital.com.
This press release is targeted to U.S. accredited investors and qualified purchasers. It does not constitute an advertisement or an offer to sell any security or the solicitation of any offer to buy an interest in the Fund or any existing or future fund or investment vehicle managed or advised by Drift Capital and/or its affiliates or any other security. No sales of any Fund interests shall be permitted in any jurisdiction in which such offer, solicitation or sales would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
The Fund interests will be offered only to accredited investors, including “qualified purchasers” as defined by Section 2(a)(51) of the Investment Company Act, in reliance on the exemption from registration set forth in Rule 506(c) of Regulation D promulgated under the Securities Act. Under Rule 506(c), general solicitation of offerings is permitted, however, prospective investors in the Fund may be asked to provide supporting documentation satisfactorily to the general partner of a prospective investor’s status as an accredited investor and/or a qualified purchaser. The Fund has not been and will not be registered under the Securities Act or the securities laws of any state or other jurisdiction, and may not be offered or sold without registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities or blue sky laws and foreign securities laws.
Private market investments are speculative and considered risky, including potential loss of your investment, and may not be appropriate for every investor. Private investments are generally an illiquid asset class; shareholders cannot sell their investments when they want to without potentially facing high losses.
Ioana Veleanu Botzoman
Montieth & Company