Coach House Capital, a Vermont-based private equity firm, has launched marketing on its debut fund Coach House Private Equity Fund to target the collector vehicle market. The fund will not pay carried interest to the GP, and will have a 10-year term.
Investors dream about markets with expanding global demand, finite supply, little or no competition, and returns that are uncorrelated with traditional financial assets. Coach House Capital, a Vermont based private equity firm specializing in the investment grade collector vehicle market, is out to turn that dream into a reality with the launch of their new
Fund, Coach House Private Equity Fund, L.P.
According to Andrew Haigney, Managing Director of Coach House Capital, the Fund will target very low production sports, touring, and competition vehicles, mainly from the late 1950s through the early 1970s. “We expect to have between 20 and 30 vehicles in this portfolio,” Mr. Haigney said, and calling on his background in trading the illiquid securities of closely held companies he added, “We see the sweet spot in the collector vehicle market between $800,000 to $1.5 million from both a capital appreciation and liquidity perspective.”
The investment grade collector vehicle market has outperformed many asset classes in recent years and Mr. Haigney sees the trend continuing for the foreseeable future, explaining, “You have a market with fixed supply and expanding global demand, economics 101 tells us that this leads to rising prices.”
With the launch of the Fund, Coach House is opening up an asset class that was previously reserved only for the ultra wealthy. “The Fund offers investors an opportunity to gain exposure to a diversified portfolio of highly coveted vehicles while taking advantage of the economies of scale associated with collective asset management,” said Mr. Haigney, adding that, “Coach House has developed a custody program that will mitigate the effects of storage during our investment holding period.”
Mr. Haigney, who has personally owned more than fifty vehicles and is a third generation Wall Street veteran with extensive capital markets experience, stated that his “passion for this asset class is only surpassed by his passion for investment management,” and continued, “This is an investment product, run by experienced investment professionals who understand that at the end of the day what matters is the investment return.”
An outspoken critic of the investment management industry fee structure, Mr. Haigney is putting his money where his mouth is by forgoing carried interest fees, saying, “It’s our fundamental belief that the investment returns belong to the investors, not the investment managers.” And adding, “As an asset manager we have a fiduciary duty to protect our investors’ returns, not take them for ourselves.”
The Fund, which will have a ten-year term, is being offered only to “Accredited Investors” as defined in Regulation D under the Securities Act of 1933 or “Qualified Purchasers” under the Investment Company Act of 1940. The Fund is expected to close in the first quarter of 2014.
About Coach House Capital
Coach House Capital Corporation (www.coachhousecorp.com) was founded to provide qualified investors access to the investment grade collector vehicle market. Through underlying partnerships, Coach House is applying the principles of collective asset management, diversification and other investment disciplines to this alternative asset class.
Coach House seeks to deliver superior returns while keeping investment related expenses to a minimum.
If you’d like more information about Coach House and the Coach House Private Equity Fund, L.P., or to schedule an interview with Andrew Haigney, Please call (802) 735-2324 or email firstname.lastname@example.org.
This announcement does not constitute an offer to purchase or sell any securities, including Partnership Interests. Partnership Interests will be offered privately on the basis of the Confidential Private Placement Memorandum of the Partnership, dated November 15, 2013 as the same may be updated or modified from time to time, only to “Accredited Investors” as defined in Regulation D under the Securities Act of 1933 or “Qualified Purchasers” under the Investment Company Act of 1940 and only to investors that have sufficient financial knowledge and experience and that are capable of evaluating the risks and merits of an investment in the Partnership. An investment in the Partnership is speculative and is subject to a number of risks, including, but not limited to, the loss of principal. Some, but not all, of the risks are highlighted in the Confidential Private Placement Memorandum of the Partnership. (See for example “Certain Risk Factors” and “U.S. Federal Income Tax Considerations.”) Investors should consider and understand the risks before making an investment in the Partnership. Interests will not be registered under any federal or state securities laws.