Despite the tumult of global equity markets, coinciding with the decline in UK house prices, one asset class has stood out as a star performer: collectible motor cars and bikes. Tracked by globally recognised HAGI Top Index, it confirms this alternative assets class is countercyclical against current trends, with it being up 32 per cent year on year, up 28 per cent in 2022 and up 34 per cent for the past three years (2019 – 2022). Forming a compelling opportunity for investors to be involved, Tertre Rouge Assets PLC (TRA) confirms it is now listed on the renowned London Stock Exchange.
Forming a new listing on the Main Market of the London Stock Exchange, Tertre Rouge Assets PLC’s objectives are clear; to provide investors (private and institutional) with a secure, liquid, Financial Conduct Authority-regulated method of investing in blue-chip automobiles and motorcycles through listed shares, on arguably one of the world’s most recognised stock exchanges. Co-founded by Steven Schapera, who has extensive listed company experience, and André Ahrlé, who has over 30 years’ experience investing in this space; the two joined forces with motorsport giants David Coulthard, MBE, Mika Häkkinen and Allan McNish who bolster the Board and deepen the company’s extensive network.
Listed as a special purpose acquisition company (SPAC) focused on investing in blue-chip cars, motorcycles and ancillary businesses, TRA’s launch marks the first time that collectable vehicles and motorbikes are being recognised as an alternative asset class on a major stock exchange. It exists to not only overcome the fundamental problems that would-be investors have to participate in this robust alternative asset class, commonly seen to be limited knowledge and lack of liquidity, but also offer long-term investment potential through acquiring exceptional, off-market, classic, provenance-rich collectable cars and motorbikes purchased through Tertre Rouge Assets’ Founders and Board’s network. Focused on the long- and short-term investment opportunity, the TRA team will build a revenue stream through events that leverage the company’s blue-chip vehicle collection, social media opportunities, alongside the relationships the Board has with key players in the industry, too.
As with any new venture, success is known to be contingent upon execution. Leading the company are highly-experienced investors, each established within their respective fields. The first is Non-Executive Chairman and Co-Founder, Steven Schapera, whose success lies in starting businesses from scratch (or investing at a very early stage), scaling them up, and exiting to a major strategic brand. Schapera is renowned for his involvement in the sale of the global cosmetics brand BECCA, which he co-founded, to Estée Lauder in 2016, and latterly his involvement in the sale of Invincible Brands to Henkel in 2020. An avid investor that has developed an acquisitional mindset and a keen eye for promising start-ups, Steven’s passion for classic motorcars and motorcycles is long-standing, most recently seen through the diversification of his portfolio through investing in this alternative asset class.
The second is CEO and Co-Founder André Ahrlé, who has a passion for, and racing pedigree in, investment-grade collectable cars and motorbikes. Following a successful pro-racing career with Mercedes-Benz and Porsche GT throughout the Nineties and early Noughties, André has enjoyed a lucrative profession working in the private security sector, founding two companies specialising in complex executive protection assignments and commercial counterespionage, as well as providing security advisory services for celebrities, high-net-worth individuals and various European and American corporations. His competitive and ‘champion’ mindset, well-honed through years of top-level racing, saw him join forces with Steven to create a formidable team of Board members and advisors, each with a strong network of contacts that together provide a sustainable competitive advantage for Tertre Rouge Assets.
Bolstering the Board are three highly-regarded motorsport and commercial minds: Mika Häkkinen, David Coulthard, MBE and Allan McNish. Staples in Formula One and Le Mans history, with multiple championship wins between them, their roles as Non-Executive Directors in the company further support their belief in classic motorcars and motorcycles as a robust alternative investment class. Their knowledge and contacts, gained from travelling the globe and networking at the very highest level, provides TRA a competitive advantage that is an especially significant aid in building the asset portfolio, developing the revenue-generating business around events, and understanding the interests of shareholder enthusiasts in this space.
André Ahrlé, CEO and Co-Founder of Tertre Rouge Assets PLC said: “I’ve always been interested in competitive motorsports. In my life I have dedicated quite some time curating my own private collection of classic and modern cars and motorcycles, utilising my ever-growing global network in the motorsports and classic motor car community. Through my career in motor racing, I’ve been lucky enough to connect with some of the world’s best and brightest in the industry and learn the importance of having a good team around you. When TRA was still in the concept stage, one of the most important aspects of the business that Steven [Schapera] and I talked about was getting the right people on board. We were extremely selective with whom we approached and were looking for people whose sporting prowess was matched by a sharp business intellect. Our mission is to build a business that creates generational wealth through access to exceptional tangible assets, with full liquidity, and proper regulation. With this team, we are very confident we can achieve it.”
Mika Häkkinen, former Formula One driver and Non-Executive Director of Tertre Rouge Assets PLC said: “When André [Ahrlé] and Steven [Schapera] asked me to join them on their mission to create a SPAC focusing on investment-grade classic cars and motorcycles, the opportunity immediately resonated with me. I’ve spent my whole life around cars, and I see immense value in investing in these tangible assets. Top-of-the-line cars and motorcycles, with a unique history, are known to be stable investments and are well insulated from the market’s volatility. I’m looking forward to working together with David [Coulthard, MBE] and Allan [McNish], putting my knowledge to good use and collaborating with the TRA team to offer more people the opportunity to diversify their asset portfolios.”
HAGI Top Index summary, to end October 2022: 1. HAGI Top up 27.53 per cent year to date (YTD), and up 31.81 per cent year on year (YOY) 2. HAGI Top (excludes Porsche and Ferrari) up 24.01 per cent YTD, and up 26.94 per cent YOY 3. HAGI Ferrari up 29.97 per cent YTD, and up 33.74 per cent YOY 4. HAGI Mercedes-Benz Classic up 19.85 per cent YTD, and up 23.64 per cent YOY
About Tertre Rouge Assets
Tertre Rouge Assets PLC (TRA) has been established as a special-purpose acquisition company with the objective of building the first listed global consolidator in the investment-grade classic motorcar and motorcycle sector. With its shares admitted to the Official List by way of a Standard Listing on the Main Market of the London Stock Exchange, TRA intends to apply the significant experience of its management team, and their network and relationships, to acquire a consolidated asset portfolio of collectable automobiles that present significant upsides as an alternative investment asset class. Its management team consists of leading racing car drivers, investment specialists and automotive collectors from around the world. Co-Founded by Steven Schapera and André Ahrlé, Tertre Rouge Assets’ Board of Directors is bolstered by Mika Häkkinen, David Coulthard, MBE and Allan McNish. www.tertrerougeassets.com