00:00We're joined by Eden Cooper now founder and managing partner at Drift Capital. It's an asset management firm that invests
00:06in the world's rarest and most valuable cars.
00:09And Eden I met you at the bridge last year at the car show in Bridge Hampton and you had
00:14at that show a Ferrari F40 which is for many people like I guess your generation really the holy grail
00:22of Ferraris right.
00:23It's like kind of GTO of the youth of today and you've now sold it for more than five million
00:29dollars. You also sold a Porsche Carrera GT which is the famous Paul Walker car and Doug DeMuro obviously has
00:35one as well for over three million dollars.
00:37Are these the first vehicles from your fund that you've been able to exit. They are. We set up the
00:42fund about three years ago and they're the first realization to the track record that we've had today.
00:47But it's a record price. I think for the Carrera GT it's the most I've ever seen one sell for.
00:53So you're really benefiting from this wave. We've talked to people from Broad Arrow.
00:58We've talked to people from other auction shops who Mecham for example they just sold the GTO to David Lee
01:06for thirty six million dollars who are saying like right now the demand is hot. Why is that.
01:11I think what we're seeing is generational wealth shifts really taking effect in the collector car market whereas fifties and
01:18sixties era Ferraris were typically the blue chips.
01:21Now it's being shifted towards the analog supercars of the 90s and the 2000s era as younger collectors enter the
01:28market.
01:29So you started this fund three years ago. Can I ask just how how it came to be. Sure.
01:34Because this is also a moment where I feel like people want things that aren't correlated to markets. And I
01:38can't think of something that is uncorrelated as much as maybe cars and used cars selling.
01:43I would agree with you Danny. You know this started because of my passion for data and for automobiles.
01:49I had been following the automotive market for the past 10 years and seen some of these rare cars go
01:54up exorbitantly in value and said wait a second.
01:57Why can't I participate in that as an investor. Is there a way to do that. And the answer was
02:03no not at the time.
02:04So I went out and set up a fund focused on investing in the rarest most valuable cars in existence.
02:12So who have you got investing with you and what kind of returns are you targeting.
02:18So mostly family office types are those that have sort of a niche interest for managers who have sort of
02:25an edge into uncorrelated assets.
02:27Returns have been quite strong. Of course we have to manage insurance maintenance on the vehicles storage of the cars.
02:33But we got to drive them once in a while. You got to drive them once in a while. Right.
02:37Exactly. Keep them in operable and excellent condition.
02:40But the returns have been quite strong. You know the holding period on average has been about two years for
02:44the cars has been north of you know 30 40 percent for those cars.
02:49How do you source these cars. What does origination look like. So just like you would have somebody who's a
02:53specialist in Picasso's blue period.
02:55For example you have people who focus purely in you know European spec Ferrari F40s or 288 GTOs. There are
03:04specialists that deal in this trade.
03:06You have Johnny Lieberman I saw advising you for example for car enthusiasts. He's a very you know famous automotive
03:12journalist.
03:13Who else have you chosen to give you advice on this.
03:16Yeah. A number of advisor friends in this world that sort of pair both automotive and financial expertise.
03:25Neelan Patel another great friend of mine who is a portfolio manager at MKP Capital.
03:30You know basically helping me institutionalize this from day one. Right.
03:34I wanted this to feel like this was any other type of private equity firm that people were comfortable with
03:39that we had white glove governance diligence transparency throughout.
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