In what may be one of the rarest alternative investments available, the first-ever Hypercar Investment Fund is being launched by Magnolia Capital to take advantage of increasing high-net-worth investor (HNWI) interest in luxury collectibles.
Magnolia has, managed to do what most can’t and, secured one of Italian bespoke automotive producer Lamborghini’s last naturally aspirated, non-hybrid, V12 cars – the Lamborghini Essenza SCV12. With only 40 of these vehicles to be produced, demand has been strong, and access is exclusive with no cars available via dealers’ stock. The model is considered to be the end of an era as auto producers increasingly gear up to manufacture electric vehicles.
Commenting on the Magnolia Hypercar Investment Fund, Magnolia founder and Chief Investment Officer Mitchell Atkins said: ”These ultra-rare vehicles are sought-after by exotic car collectors, and by high-net-worth investors who have seen the value of similar vehicles by other bespoke manufacturers appreciate in just a few years.
“We expect the Lamborghini Essenza SCV12 will join these ranks.”
Mr. Atkins said: “Lamborghini Squadra Corse, the racing arm of Automobili Lamborghini S.p. A, are creating the purest performance Lamborghini they had ever made, with a maximum of only 40 cars to be manufactured.
“This is reported to be Lamborghini’s farewell celebration to the naturally aspirated, non-hybrid, pure V12 experience and the most exclusive track vehicle they have ever created,” he said.
The Essenza SCV12 6.5 liter V12 engine produces 830 horsepower that goes from 0-100 kph in just 3.4 seconds and can reach a top speed of around 340 kilometers an hour through a six-speed sequential gearbox. The car is rumored to cost close to A$3.6m - if you are lucky enough to get on the exclusive buyer’s list.
Mr. Atkins said: “Magnolia Capital, via its network, has been fortunate enough to secure one of these very rare cars. Even Lamborghini fans and HNWIs can’t walk into a local dealer and buy a Lamborghini Essenza SCV12 off the floor.”
“While electric vehicle production is increasingly becoming the focus, elite petrol vehicles such as those from Lamborghini Squadra Corse are decreasing in production and therefore should become rarer end-of-an era investments.”
Mr. Atkins added that while most cars lose value immediately after they are driven off of the dealer lot, classic and last-of-breed cars gain in value over time, due to rarity, performance, or special attributes.
“Classic and last of breed cars, in general, have been shown to gain in value more than other types of collectibles,” he said.
The Historic Automobile Group International (HAGI) tracks the collector's car market and its HAGI Top Index was up 33.78% for 2019, more than 500% over the preceding 10 years thanks to increasing global wealth chasing a limited number of super-collectible cars. Magnolia envisages its Hypercar Investment Fund will see similar appreciation to the likes of the Ferrari LaFerrari FFX-K, Mclaren P1-GTR, and Aston Martin Vulcan which have all increased in value considerably since their respective launches. The fund is a one-off opportunistic alternative investment that complements Magnolia’s traditional bespoke equity and fixed income investor is driven and pooled funds investment options. The minimum investment in the Fund is A$50,000 and is available to sophisticated HNW investors only. The fund structure has been documented by Baker McKenzie and is audited by BDO. The car cannot be driven locally by investors as it will remain in a dedicated storage facility at the Lamborghini factory in Italy.
Further details on the car can be seen at
https://www.lamborghini.com/en-en/motorsport/motorsport-models/essenza-scv12
About Magnolia Capital
Founded in 2015, Magnolia Capital Pty Ltd and its related entities (MC) provides a premium range of fixed income, equities, and advisory products and services to High Net Worth and Family Office Wholesale Clients by virtue of its extensive referral network, access to a strong deal flow and the broad industry experience of its staff. MC is an Asia Pacific focussed financial services business, operating through its 5 offices located in Sydney, Central Coast (NSW), Melbourne, Hong Kong, and Singapore. To date, MC has facilitated over $1.5b worth of transactions.
Mitchell Atkins is the founder and Chief Investment Officer of MC with a wide range of financial services experiences obtained whilst working for large and boutique financial firms around the world. He and the MC team act as trusted investment advisors for clients located around Asia and beyond.
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