Tertre Rouge Assets PLC (LSE:TRA) CEO André Ahrlé and Chairman Steven Schapera and André Ahrlé speak to Thomas Warner from Proactive about their innovative approach to generating shareholders by consolidating investment-grade classic cars and motorcycles.
Their strategy revolves around creating a portfolio that aims for a 15% Internal Rate of Return (IRR) and operating companies with potential returns of 20-25%. This combined approach targets an overall investor return of 15-20%.
The company's board boasts deep industry knowledge and includes prominent figures like Mika Hakkinen, David Coulthard, and Allan McNish.
André Ahrlé, a former professional racer and Daytona winner himself, highlights his journey from collecting Porsches to co-founding Tertre Rouge Assets. He emphasises the global appeal and iconic status of their car collection, appealing to a wide range of enthusiasts and collectors. The investment model allows shareholders to benefit from the appreciation of the entire portfolio, rather than individual assets.
Looking ahead, Schapera is confident about the company’s meticulously planned future, citing an analysis by Oberon that predicts a 15-25% return. This optimism is based on the solid foundation of their car portfolio and cash-generating businesses.
