Mach 1 Fund Automotive Art Investment Case Study

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According to the CHROME TEMPLE Investments Mach 1 Fund ("Mach 1 Fund" or the "Fund") Portfolio Manager, Lex Pedersen, successfully investing in rare and collectible cars it isn’t about passion alone; it's about making strategic choices that balance appeal with financial prudence. For Lex, the Fund's investment in this 2001 Lamborghini Diablo VT represents a quintessential example, combining iconic status, historical significance, and robust market demand.

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Asset Overview

The Lamborghini Diablo VT is renowned for its distinctive design, powerful performance, limited production numbers and the last model produced by Lamborghini before acquisition of the brand by Audi. When the Fund was offered an opportunity to purchase one such example, a thorough due diligence process was conducted, and an investment case was put forward to the Portfolio Manager and Investment Committee. After receiving the appropriate approvals, the Fund invested in a what we believe to be one of the finest specimens in Australia. Read on to learn more about this Mach 1 Fund vehicle investment and some of the rationale behind the acquisition and divestment of this Fund asset.

• ‍Year: 2001‍
• Make: Lamborghini‍
• Model: Diablo VT‍
• Odometer: 11,277 km‍
• Colour: Black

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The Investment Case

Trend: Data trends indicate that the demand for rare performance cars like the Lamborghini Diablo VT has been growing, with cars as an asset class increasing by 327% over the last 15 years (22% annualised)*. Enthusiasts and investors alike recognise the potential for meaningful returns from these last-of-the-line vehicles, making it a sought-after asset in the market. Specifically, our analysis indicates that the demand for larger capacity V12 engines, especially those paired with manual transmissions, has been increasing due to their representation of a bygone era of engineering and analogue driving experiences, delivering some of the most favorable returns in the collectible car market.

Significance: The Lamborghini Diablo was first introduced in 1990, replacing the legendary Countach, and set a new standard as the first Lamborghini capable of reaching speeds over 200 mph (320km/h). The Diablo over its 11 year production life was offered in many variations culminating in the car in question, the Diablo VT 6.0. The VT (standing for "Viscous Traction")added a brand new and sophisticated four-wheel-drive system, enhancing its handling and performance. The VT 6.0 was introduced in 1998 as the final iteration of the Diablo and was produced from 1998 until production ceased in 2001 to make way for the Murcielago. This model holds special appeal due to its distinctive design, powerful performance, and historical significance as the last model to be produced by Lamborghini before its acquisition by Audi in 1998. Powered by a 6.0 litre V12, it produced 410kW and 620Nm of torque. As expected, performance was exceptional with the VT 6.0 accelerating from 0 to 100 km/h in under 4 seconds on its way to a top speed of 335km/h.

Rarity: With only approximately 400 units produced, the Lamborghini Diablo VT is a rare find. Its limited production numbers ensure that each vehicle maintains its exclusivity and desirability among investors, collectors and enthusiasts. Whilst all Diablos were equipped with a manual transmission, the incoming Murcielago (and the V10 little brother Gallardo) was the platform to launch the new “automatic” gearboxes, leaving the Diablo as the last all-analogue Lamborghini.

Condition: This particular 2001 Lamborghini Diablo VT is in pristine preserved condition, with a well-documented service history that was verified during the due diligence process. The vehicle has been meticulously maintained, ensuring peak performance and reliability. The car has been serviced on time, every time, regardless of the kilometres travelled, highlighting its dedication to maintenance and preservation.

Provenance: One of the critical factors in determining the value of a collectible car is its provenance. Many low kilometre examples have long stretches of patchy service history that can lead to driveline degradation and malfunction that can be a very costly exercise to make right. This Diablo VT has an impeccable provenance. Featuring a well-documented history, which contributes significantly to its investment appeal.

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Performance Of The Investment

Financial Metrics:‍

• Acquisition Date: June 2023
• Sale Date: February 2024
• Gross Annualised Return⁺: 18%

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In Conclusion

We believe this investment was successful, delivering 11% within 8 months (an annualised gross return of 18%)⁺ and underscoring the Fund's commitment to sourcing exceptional last-of-the-line vehicles that combine rarity, historical significance, and market demand. Whilst the original target hold period of this car was expected to be longer, we employ a results-before-romance mentality. With a viable offer in front of us, the Portfolio Manager, with support of the Investment Committee, felt that it was in the best interest of the Fund's investors to move on the offer, allowing an off market divestment event and a subsequent reinvestment of capital for the potential of ongoing returns.

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Start a Conversation Today

If you’re a wholesale or institutional investor interested in combining the dual benefits of the prospect of financial returns and the joy of being part of a community that owns and preserves a piece of automotive history, start a conversation with an authorised member of the team about joining the Mach 1 Fund today.

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Blog Article Disclaimer & References:

CHROME TEMPLE Investments Pty Ltd ACN 640 888 026 is a corporate authorised representative (number 001284056) of SILC Fiduciary Solutions Pty Ltd ACN 638 984 602 (AFS license number 522145), who is limited to general advice and deal by arranging services to wholesale clients relating to the CHROME TEMPLE Investments Mach 1 Fund only.

The use of this site is governed by a Terms of Use Disclaimer. By using this site you acknowledge that you have read the Terms of Use Disclaimer and that you accept and will be bound by the terms thereof. Review the full Disclaimer.

This is general information only and doesn’t take into account your personal objectives, financial situation, or needs. Investment is only available to wholesale clients. Prospective investors should carefully review the Mach 1 Fund’s information memorandum (IM) in full and seek professional advice prior to making any investment decision.

Past performance is not a reliable indicator of future performance and the expected returns of the Fund may not occur as expected or at all. An investor’s balance in the Fund may decrease as well as increase in value.

*Based on Historic Automobile Group International ("HAGI") top index from 31 December 2009 to 31 December 2023.  

‍⁺Gross vehicle return is based on the vehicle's sale price and purchase price. Annualised gross returns are calculated as gross vehicle return divided by the number of days held times 365. Gross vehicle returns are before fees and expenses.

This blog article was published by CHROME TEMPLE Investments Pty Ltd and reflects the author's opinions on a particular subject matter. The views expressed do not necessarily reflect the performance of the Fund nor reflect the opinions of the Trustee or their affiliates.

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Continue Reading:
The Fund Intro 00: Genesis
The Fund Intro 01: Objective
The Fund Intro 02: Investment Thesis
The Fund Intro 03: Acquisition Strategy
The Fund Intro 04: Fund Structure
The Fund Intro 05: Governance & Oversight
‘GODZILLA’ Acquired By The Mach 1 Fund

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