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Drift Capital Launches Fund Investing in Rare Cars

September 25, 2023, 07:48 AM
Filed Under: Investor Services

Drift Capital, an alternative asset manager providing fractional investments in a diversified portfolio of collectible automobiles, launched 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 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, provides 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 asset class, outperforming over multiple market cycles and serving as a diversifying element to any holistic investment strategy.”

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