Microsyndication for Collectible Cars
2025-2029
CONFIDENTIAL
Chrome Temple Micro represents a revolutionary opportunity in the collectible car investment space—a microsyndication platform designed to democratize access to automotive art investments. Building on the success of Chrome Temple's flagship Mach 1 Fund, Chrome Temple Micro aims to lower the barrier to entry for automotive enthusiasts and investors seeking exposure to this unique asset class.
By reducing the minimum investment requirement from $100,000 to just $10,000, Chrome Temple Micro will open the doors to a broader market of potential investors while maintaining the same professional management, data-driven acquisition strategy, and rigorous vehicle selection process that has made the Mach 1 Fund successful.
The collectible car market has demonstrated remarkable resilience and growth, with premium collectible vehicles outperforming traditional investment classes over the past decade. With returns averaging 11% annually for Chrome Temple's existing fund, the market for automotive art investments presents a compelling opportunity for wealth creation and portfolio diversification.
Research indicates a significant gap in the market for investment vehicles that cater to enthusiasts and investors with $10,000-$50,000 to allocate to collectible car exposure. Chrome Temple Micro is strategically positioned to capture this underserved segment.
Chrome Temple Micro will operate as a managed investment unit trust, structured as a subsidiary of Chrome Temple with its own distinct portfolio of vehicles. The fund will target a carefully curated selection of emerging classics and modern collectibles with strong appreciation potential.
Revenue will be generated through a combination of:
Chrome Temple Micro requires initial capital of $500,000 to establish operations, fund marketing initiatives, secure necessary regulatory approvals, and acquire the first selection of vehicles. The parent company, Chrome Temple, will provide this initial investment.
Chrome Temple Micro is scheduled for a phased launch beginning in Q3 2025, with the first investment opportunities available to selected investors by Q4 2025. Full public launch is scheduled for Q1 2026, with targeted assets under management of $5 million within the first year of operations.
Chrome Temple was established in 2021 as Australia's first dedicated vehicle investment firm, focusing on creating investment opportunities in the collectible automotive space. The company's mission is to make returns from buying, holding, and selling performance cars, taking a data-driven, unemotional, and professional approach to maximize returns while making automotive investments accessible to investors.
Since its inception, Chrome Temple has built a reputation for excellence in the automotive investment space, with media coverage from prestigious outlets including The Australian Financial Review, News.com.au, and various automotive publications. The company is recognized for its deep expertise in vehicle valuation, market timing, and acquisition strategy.
Chrome Temple's flagship offering, the Mach 1 Fund, is a managed investment unit trust that invests in a curated portfolio of last-of-the-line vehicles. Launched in May 2021, the Mach 1 Fund has delivered impressive results:
The Mach 1 Fund utilizes a stringent vehicle selection process, with less than 6% of vehicles considered passing the rigorous evaluation criteria. The fund's focus is on last-of-the-line, limited production vehicles from premium manufacturers, which often represent the culmination of a model's development and hold significant collector appeal.
With a minimum investment of $100,000, the Mach 1 Fund primarily serves high-net-worth individuals and sophisticated investors. The fund is structured to be SMSF-compliant and offers semi-annual exit windows for investors.
Chrome Temple has demonstrated exceptional ability in identifying vehicles with strong appreciation potential. Notable examples from their portfolio include:
| Vehicle | Holding Period | Annualized Return | Gross Return |
|---|---|---|---|
| Lamborghini (Model A) | 11 Months | 80% | 74% |
| Mercedes-Benz (Model B) | 28 Months | 20% | 48% |
| Ferrari (Model C) | 5 Months | 115% | 47% |
| Lamborghini (Model D) | 29 Months | 18% | 43% |
In addition to long-term holdings, Chrome Temple has demonstrated skill in tactical trading, generating significant returns on shorter-term holds:
| Vehicle | Holding Period | Annualized Return | Gross Return |
|---|---|---|---|
| Lamborghini (Model E) | 45 Days | 60% | 7% |
| Mercedes-Benz (Model F) | 88 Days | 66% | 12% |
| Aston Martin (Model G) | 74 Days | 97% | 20% |
| Ferrari (Model H) | 161 Days | 56% | 25% |
While the Mach 1 Fund has been successful, Chrome Temple has identified a significant opportunity in the market for a more accessible investment vehicle. Market research and customer inquiries have revealed strong interest from potential investors who are enthusiastic about collectible car investments but are unable to meet the $100,000 minimum investment requirement of the Mach 1 Fund.
Chrome Temple Micro is designed to address this market gap, applying the same proven investment methodology and expertise that has driven the success of the Mach 1 Fund, but with a lower entry point and a focus on emerging collectibles and modern classics that offer attractive risk-adjusted returns.
By leveraging Chrome Temple's established brand, expertise, and operational infrastructure, Chrome Temple Micro will be able to launch efficiently and scale quickly to meet market demand.
The collectible car market represents a unique alternative asset class with distinctive characteristics that differentiate it from traditional investment vehicles. Over the past decade, premium collectible cars have demonstrated robust performance, outpacing many conventional investment options while offering tangible asset value and strong resistance to inflationary pressures.
According to data from specialty insurers and market analysts, the global collectible car market is estimated to be worth over $30 billion annually, with approximately 43 million vehicles in the United States alone fitting the definition of a collector vehicle—roughly 16% of all registered vehicles in the country.
The performance of collectible cars as an investment class has been noteworthy:
While the market experienced a correction during the global pandemic, it has rebounded strongly, with particular strength in limited-production modern classics and vehicles from premium manufacturers like Ferrari, Lamborghini, Porsche, and Mercedes-Benz.
The collectible car market can be segmented into several key categories:
| Segment | Description | Typical Price Range | Growth Trend |
|---|---|---|---|
| Blue Chip Classics | Rare vintage vehicles from prestigious marques, typically pre-1970s | $1M - $50M+ | Stable, long-term appreciation |
| Modern Classics | Limited production vehicles from 1980s-2000s | $100K - $1M | Strong growth, high demand |
| Emerging Collectibles | Recent limited production models (2000s-2020s) | $50K - $500K | Rapid growth, increasingly popular |
| Affordable Classics | Mass-produced but culturally significant vehicles | $20K - $100K | Moderate growth, entry-level |
Chrome Temple Micro will primarily focus on the Emerging Collectibles and Modern Classics segments, where price points are accessible for fractional ownership and growth potential remains strong. This strategy allows the fund to build a diversified portfolio of vehicles with different risk-return profiles.
Several key factors are driving growth in the collectible car market:
The market for collectible car investment funds and syndication platforms is still relatively nascent, with a limited number of established players:
| Competitor | Business Model | Minimum Investment | Geographic Focus | Differentiators |
|---|---|---|---|---|
| Chrome Temple Mach 1 Fund | Managed investment unit trust | $100,000 | Australia/Global | Data-driven approach, SMSF compliant |
| The Classic Car Fund | Traditional investment fund | $50,000 | Europe | Focus on pre-1980s classics |
| Rally | Fractional ownership platform | $100-$500 per share | United States | Tokenized ownership, very low entry point |
| Curated Care Investment | Private equity vehicle | $250,000 | Global | Ultra-premium focus, limited accessibility |
| Supercar Sharing | Fractional ownership club | $25,000 | Europe | Usage rights included with ownership |
Chrome Temple Micro is positioned to fill a significant gap in the market between high-minimum investment funds like the Mach 1 Fund and ultra-fractional platforms like Rally. With a $10,000 minimum investment, Chrome Temple Micro will appeal to serious automotive enthusiasts and investors looking for meaningful exposure to the collectible car market without the $100,000+ commitment typically required.
The target market for Chrome Temple Micro consists of:
Based on market research and industry analysis, we estimate the size of this target market to be:
Chrome Temple Micro aims to capture 2-4% of this market over the next five years, representing $25-$250 million in assets under management.
Chrome Temple Micro will be structured as a managed investment unit trust, operating as a subsidiary of Chrome Temple. This structure offers several advantages:
The microsyndication will be governed by a comprehensive information memorandum, unit holder deed, and compliance framework. These documents will outline the rights and responsibilities of all parties, investment parameters, fee structures, and exit mechanisms.
Chrome Temple Micro will operate within the following legal framework:
The legal structure will include:
Chrome Temple Micro will leverage the operational infrastructure and expertise of the parent company while establishing specific processes tailored to the microsyndication model:
| Operational Area | Process | Responsibility |
|---|---|---|
| Vehicle Acquisition | Research, identification, due diligence, negotiation, purchase | Investment Committee & Acquisition Team |
| Vehicle Management | Storage, insurance, maintenance, documentation, provenance verification | Asset Management Team |
| Portfolio Management | Diversification strategy, market analysis, hold/sell decisions, valuation | Investment Manager & Strategy Team |
| Investor Relations | Client communication, reporting, events, education, onboarding | Investor Relations Team |
| Fund Administration | Unit pricing, distributions, redemptions, accounting, compliance | Third-party Administrator & Finance Team |
| Vehicle Divestment | Market timing, sales channel selection, negotiation, transaction management | Divestment Team & Investment Committee |
Chrome Temple Micro will operate with a lean team structure, leveraging shared resources with the parent company where appropriate while maintaining dedicated personnel for key functions specific to the microsyndication.
Chrome Temple Micro will generate revenue through a multi-tiered fee structure designed to align the interests of investors and management:
| Fee Type | Amount | Description |
|---|---|---|
| Management Fee | 1.5% per annum | Based on Net Asset Value (NAV), charged quarterly |
| Performance Fee | 15% | Of returns above a 5% annual hurdle rate, subject to high-water mark |
| Acquisition Fee | 2% | Of vehicle purchase price, to cover sourcing and due diligence |
| Divestment Fee | 2% | Of vehicle sale price, to cover marketing and transaction management |
| Administration Fee | 0.25% per annum | To cover third-party administration costs |
| Application Fee | 2% | One-time fee on initial investment (waived for early investors) |
This fee structure is competitive with comparable alternative asset investment vehicles while providing sufficient revenue to support the specialized expertise and infrastructure required for successful collectible car investing.
Chrome Temple Micro will offer investors the following key terms:
The fund will implement a staggered redemption queue if redemption requests exceed the quarterly limit, with priority based on request date. This structure balances investor liquidity needs with the relatively illiquid nature of the underlying assets.
Chrome Temple Micro will offer investors a range of benefits beyond financial returns:
While the fund is primarily focused on investment returns, Chrome Temple Micro recognizes the passion that drives interest in collectible cars and will create opportunities for investors to engage with the portfolio beyond pure financial considerations.
Chrome Temple Micro will adopt the same data-driven, analytical approach that has proven successful for the Mach 1 Fund, while tailoring the strategy to focus on vehicles in the $50,000-$500,000 price range. The core investment philosophy centers on:
"Our objective is simple: make returns from buying, holding, and selling performance cars. By taking a data-driven, unemotional, and professional approach, we aim to maximize returns while making automotive investments accessible to a broader audience."
Chrome Temple Micro will apply a rigorous selection process to identify vehicles with the highest potential for appreciation. Key criteria include:
Chrome Temple Micro will use a proprietary scoring system to evaluate potential acquisitions against these criteria, with only vehicles scoring in the top 10% of evaluated opportunities being considered for purchase.
Chrome Temple Micro will focus on four primary vehicle categories:
| Category | Description | Target Allocation | Expected Return Profile | Example Vehicles |
|---|---|---|---|---|
| Modern Performance Icons | Limited production performance vehicles from 2000-2020 | 40-50% | 10-15% annually | Porsche 997 GT3 RS, Ferrari F430 Scuderia, Lamborghini Gallardo Superleggera |
| Emerging Classics | Distinctive models from 1980s-1990s with growing collector interest | 25-35% | 8-12% annually | Ferrari 328 GTS, Mercedes-Benz 190E 2.5-16 Evolution, Audi Sport Quattro |
| Last-of-the-Line Specials | Final editions of significant model lines | 15-20% | 12-18% annually | Lamborghini Murciélago LP670-4 SV, Porsche 997 Speedster, Maserati GranTurismo MC Stradale |
| Future Collectibles | Current or recent production vehicles with strong collector potential | 5-10% | 15-25% annually | Alpine A110, Alfa Romeo 4C, BMW 1M Coupe |
This diversified approach allows the fund to balance risk while capturing growth opportunities across different market segments. Allocations may be adjusted based on market conditions and opportunities.
Chrome Temple Micro will employ a systematic acquisition process:
Continuous monitoring of market trends, auction results, and private sale data to identify potential acquisition targets.
Preliminary assessment against investment criteria, valuation analysis, and market positioning review.
Comprehensive inspection, documentation review, ownership history verification, and mechanical assessment by marque specialists.
Formal presentation to the Investment Committee with detailed analysis, valuation, and return projections.
Strategic negotiation, purchase agreement formulation, and transaction execution.
Vehicle documentation, storage arrangement, insurance placement, and maintenance planning.
Chrome Temple Micro will leverage the parent company's extensive network of dealers, auction houses, private collectors, and marque specialists to source exceptional vehicles, often accessing off-market opportunities not available to the general public.
The fund will construct a diversified portfolio to manage risk while maximizing return potential:
A target portfolio at $5 million AUM would include approximately 15-20 vehicles, with an average value of $250,000-$350,000 per vehicle. As the fund grows, both the number of vehicles and the diversity of the portfolio will increase.
Chrome Temple Micro will employ a flexible holding strategy:
The fund will maintain a dynamic approach to holding periods, regularly reassessing each vehicle's position relative to market conditions, appreciation trajectory, and portfolio balance. Decisions to hold or sell will be based on:
Preserving and enhancing the value of portfolio vehicles is a critical aspect of the investment strategy. Chrome Temple Micro will implement comprehensive management protocols:
The fund will also implement strategies to enhance value where appropriate:
These management practices ensure that vehicles maintain their condition, authenticity, and market value throughout the holding period while positioning them optimally for eventual sale.
Chrome Temple Micro requires initial capital to establish operations, obtain regulatory approvals, and acquire the first vehicles for the portfolio. The initial capital requirements are outlined below:
| Category | Description | Amount (AUD) |
|---|---|---|
| Legal & Regulatory | Fund establishment, legal documentation, regulatory filings | $75,000 |
| Initial Infrastructure | Technology systems, security, storage facilities setup | $60,000 |
| Marketing & Branding | Website, marketing materials, launch events | $85,000 |
| Operating Capital | First 12 months of operations before fee revenue | $180,000 |
| Initial Vehicle Acquisition | First vehicles for the portfolio (seed assets) | $100,000 |
| Total Initial Capital | $500,000 |
This initial capital will be provided by Chrome Temple (the parent company) in exchange for equity in Chrome Temple Micro and management rights. The capital will support operations until the fund reaches sufficient scale to be self-sustaining through fee revenue.
Chrome Temple Micro has established the following targets for assets under management:
| Year | Target AUM (AUD) | Number of Investors | Average Investment | Vehicle Portfolio Size |
|---|---|---|---|---|
| Year 1 | $5 million | 100-150 | $33,000-$50,000 | 12-15 vehicles |
| Year 2 | $10 million | 200-300 | $33,000-$50,000 | 25-30 vehicles |
| Year 3 | $25 million | 450-600 | $42,000-$55,000 | 60-75 vehicles |
| Year 4 | $40 million | 700-900 | $44,000-$57,000 | 100-120 vehicles |
| Year 5 | $60 million | 1,000-1,200 | $50,000-$60,000 | 150-180 vehicles |
These projections are based on market analysis, competitive benchmarking, and Chrome Temple's existing investor interest. The growth trajectory reflects both new investor acquisition and the expected appreciation of the vehicle portfolio over time.
Chrome Temple Micro will generate revenue through multiple fee streams:
| Revenue Stream | Year 1 (AUD) | Year 3 (AUD) | Year 5 (AUD) |
|---|---|---|---|
| Management Fees (1.5% of AUM) | $75,000 | $375,000 | $900,000 |
| Performance Fees (15% above 5% hurdle) | $30,000 | $225,000 | $540,000 |
| Acquisition Fees (2% of purchases) | $100,000 | $350,000 | $450,000 |
| Divestment Fees (2% of sales) | $20,000 | $200,000 | $300,000 |
| Administration Fees (0.25% of AUM) | $12,500 | $62,500 | $150,000 |
| Application Fees (2% of new investments) | $100,000 | $300,000 | $400,000 |
| Total Revenue | $337,500 | $1,512,500 | $2,740,000 |
Revenue projections are based on target AUM growth, expected portfolio turnover rates, and historical performance metrics from Chrome Temple's Mach 1 Fund. Performance fees assume average annual portfolio appreciation of 10-12%.
Chrome Temple Micro will incur the following operating expenses:
| Expense Category | Year 1 (AUD) | Year 3 (AUD) | Year 5 (AUD) |
|---|---|---|---|
| Staff & Management | $180,000 | $450,000 | $800,000 |
| Vehicle Storage & Maintenance | $60,000 | $225,000 | $450,000 |
| Insurance | $35,000 | $125,000 | $300,000 |
| Legal & Compliance | $40,000 | $75,000 | $120,000 |
| Marketing & Investor Relations | $90,000 | $200,000 | $350,000 |
| Technology & Systems | $30,000 | $75,000 | $120,000 |
| Administration & Operations | $45,000 | $100,000 | $150,000 |
| Other Expenses | $25,000 | $50,000 | $80,000 |
| Total Expenses | $505,000 | $1,300,000 | $2,370,000 |
Chrome Temple Micro will leverage shared resources with the parent company where appropriate to manage costs efficiently, particularly in the early stages of operation. As the fund grows, dedicated resources will be allocated to support the expanded portfolio and investor base.
Based on the revenue and expense projections, Chrome Temple Micro's profitability outlook is:
| Financial Metric | Year 1 (AUD) | Year 2 (AUD) | Year 3 (AUD) | Year 4 (AUD) | Year 5 (AUD) |
|---|---|---|---|---|---|
| Total Revenue | $337,500 | $750,000 | $1,512,500 | $2,100,000 | $2,740,000 |
| Total Expenses | $505,000 | $700,000 | $1,300,000 | $1,800,000 | $2,370,000 |
| Net Profit/Loss | -$167,500 | $50,000 | $212,500 | $300,000 | $370,000 |
| Profit Margin | -49.6% | 6.7% | 14.0% | 14.3% | 13.5% |
| Cumulative Profit/Loss | -$167,500 | -$117,500 | $95,000 | $395,000 | $765,000 |
Chrome Temple Micro is projected to reach profitability in Year 2 of operations, with increasing profitability as the fund scales. The initial operating loss in Year 1 will be covered by the startup capital provided by the parent company.
Based on Chrome Temple's historical performance and market analysis, Chrome Temple Micro projects the following returns for investors:
Return projections are based on:
It's important to note that these projections represent targets based on historical data and market analysis. Actual returns may vary based on market conditions, specific vehicle performance, and other factors. All investors will be provided with detailed risk disclosures highlighting the potential variability of returns.
Chrome Temple Micro's breakeven analysis identifies the minimum scale required for sustainable operations:
The breakeven analysis assumes the fee structure outlined earlier and the projected operating expenses. The parent company's commitment to providing $500,000 in startup capital ensures sufficient runway to reach breakeven, even if AUM growth is slower than projected.
Beyond breakeven, Chrome Temple Micro will benefit from significant economies of scale, with incremental costs growing more slowly than revenue as AUM increases. This scalability is a key component of the fund's long-term financial strategy.
Chrome Temple Micro will target several distinct investor segments:
Chrome Temple Micro will be positioned as:
Chrome Temple Micro will maintain the premium positioning of the parent brand while emphasizing accessibility and community. The brand will stand for expertise, exclusivity, and excellence, with marketing materials and communications reflecting a sophisticated, luxury aesthetic.
"Chrome Temple Micro: Exceptional Cars. Expert Management. Accessible Investment."
Chrome Temple Micro will utilize a multi-channel marketing approach:
| Channel | Strategy | Target Audience | Key Metrics |
|---|---|---|---|
| Digital Marketing | Targeted advertising on platforms like LinkedIn, Instagram, and Google; retargeting campaigns; automotive enthusiast site placements | All segments with digital focus | Click-through rate, qualified leads, cost per acquisition |
| Content Marketing | Expert articles, market insights, vehicle spotlights, investment case studies distributed through the Chrome Temple website and third-party publications | Automotive enthusiasts, alternative asset investors | Engagement time, content shares, lead generation |
| Events & Exhibitions | Presence at premium automotive events, exclusive investor showcases, private viewings and driving experiences | High-net-worth individuals, automotive enthusiasts | Attendee conversion rate, event ROI, relationship building |
| Strategic Partnerships | Collaborations with wealth advisors, SMSF specialists, automotive clubs, luxury lifestyle brands | SMSF trustees, HNWIs, enthusiast communities | Referral quality, partnership ROI, network expansion |
| PR & Media Relations | Regular press releases, media interviews, thought leadership placement in financial and automotive publications | All segments | Media placements, audience reach, brand sentiment |
| Webinars & Education | Regular investment webinars, market updates, educational content about collectible car investing | Emerging HNWIs, alternative asset investors | Attendee engagement, lead qualification, content utility |
The marketing strategy will balance broad awareness-building with highly targeted acquisition efforts. Digital channels will enable precise targeting of qualified prospects, while high-touch events and partnerships will facilitate deeper engagement with serious investors.
Content will play a central role in Chrome Temple Micro's marketing strategy, establishing the brand as a thought leader while educating potential investors about collectible car investments:
Content will be distributed through multiple channels including:
Chrome Temple Micro will implement a phased investor acquisition strategy:
Target existing Chrome Temple network, early adopters, and strategic partners to secure the first $1-2 million in commitments.
Leverage referrals from early investors, activate strategic partnerships, and implement targeted marketing to reach $3-4 million AUM.
Expand marketing reach, increase PR presence, and develop sector-specific strategies to reach $5-10 million AUM.
Implement data-driven acquisition optimization, expand geographic reach, and develop institutional relationships to reach $25 million AUM.
Key acquisition tactics will include:
Retaining investors is as important as acquiring them. Chrome Temple Micro will implement a comprehensive retention strategy:
The retention strategy will be supported by a customer relationship management (CRM) system that tracks investor preferences, engagement history, and communication patterns to provide personalized service and anticipate needs.
Chrome Temple Micro will allocate its marketing budget strategically across channels:
The marketing budget will start at $85,000 for initial launch activities and grow to approximately $350,000 annually by Year 5. Budget allocation will be reviewed quarterly and adjusted based on channel performance, seasonal opportunities, and strategic priorities.
Key performance indicators (KPIs) for marketing effectiveness will include:
Chrome Temple Micro will operate with an efficient organizational structure that leverages the expertise and resources of the parent company while maintaining operational independence:
| Department | Key Responsibilities | Staffing (Year 1) | Staffing (Year 3) |
|---|---|---|---|
| Executive Management | Strategic direction, governance, investor relations, regulatory compliance | 1 (shared with parent) | 2 (1 dedicated) |
| Investment & Acquisition | Vehicle research, market analysis, acquisition strategy, due diligence, purchasing | 2 (1 dedicated, 1 shared) | 4 (3 dedicated) |
| Vehicle Management | Storage, maintenance, insurance, documentation, transportation | 1 (shared with parent) | 3 (2 dedicated) |
| Investor Relations | Client communication, reporting, event management, inquiries | 1 (dedicated) | 3 (dedicated) |
| Marketing & Sales | Brand development, acquisition campaigns, content creation, partnerships | 1 (shared with parent) | 2 (dedicated) |
| Finance & Administration | Accounting, financial reporting, unit pricing, distributions, compliance | 1 (shared with parent) | 2 (1 dedicated) |
As Chrome Temple Micro grows, the organizational structure will evolve to include more dedicated roles and specialized functions. The initial lean structure leverages shared resources with Chrome Temple to minimize overhead while ensuring operational capability.
Chrome Temple Micro will be led by a core team of experienced professionals:
Reporting to: Chrome Temple Board of Directors
Responsible for overall strategy, governance, and performance of Chrome Temple Micro. Will lead investor relations with high-value clients and oversee regulatory compliance and relationship with trustees.
Requirements: Minimum 10 years in investment management, experience with alternative assets, strong leadership and communication skills, deep automotive knowledge.
Reporting to: Managing Director
Leads vehicle identification, evaluation, and acquisition. Responsible for market analysis, due diligence protocols, and developing acquisition strategies aligned with fund objectives.
Requirements: Extensive experience in collectible car transactions, strong network within collector community, analytical skills, negotiation expertise.
Reporting to: Managing Director
Manages all aspects of investor communications, reporting, onboarding, and relationship management. Responsible for organizing investor events and facilitating investment process.
Requirements: Background in client service within financial services, excellent communication skills, understanding of investment structures, attention to detail.
Reporting to: Head of Acquisitions
Oversees management of all vehicles in the portfolio including storage, maintenance, insurance, transportation, and documentation. Ensures preservation of vehicle value and condition.
Requirements: Experience in collectible car management, knowledge of maintenance requirements for various marques, organizational skills, attention to detail.
These core positions will be supported by the broader Chrome Temple team and external specialists as needed. As the fund grows, additional dedicated roles will be added in areas such as marketing, finance, and vehicle management.
Chrome Temple Micro will implement standardized procedures for key operational areas:
These procedures will be documented in comprehensive operations manuals and supported by appropriate workflow management systems. Regular reviews and audits will ensure adherence to established protocols and identify opportunities for improvement.
Chrome Temple Micro will utilize several key technology systems to support operations:
These systems will be integrated where possible to create a seamless operational environment. Chrome Temple Micro will leverage the technology infrastructure already established by the parent company while implementing additional systems specific to the microsyndication model.
Chrome Temple Micro will require specialized facilities and infrastructure:
| Facility Type | Requirements | Year 1 Capacity | Year 3 Capacity |
|---|---|---|---|
| Vehicle Storage | Climate-controlled, secure facilities with fire suppression, 24/7 monitoring, and appropriate insurance coverage | 15-20 vehicles | 60-75 vehicles |
| Office Space | Professional environment for staff, meeting rooms for investor consultations, workstations for operations | Shared with parent company | Dedicated space with shared amenities |
| Showcase Venue | Presentable space for vehicle viewing, investor events, and educational seminars | Temporary/rented as needed | Dedicated showcase space |
| Vehicle Workshop | Dedicated area for vehicle inspection, minor maintenance, preparation, and documentation | Limited space shared with storage | Dedicated workshop facility |
Chrome Temple Micro will initially leverage the existing infrastructure of Chrome Temple, gradually establishing dedicated facilities as the portfolio grows. This approach minimizes initial capital requirements while ensuring appropriate infrastructure is in place to support operations.
Maintaining the condition and value of portfolio vehicles is a critical operational priority. Chrome Temple Micro will implement comprehensive preservation protocols:
These preservation activities will be managed by the Vehicle Portfolio Manager with support from marque specialists and qualified technicians. The cost of these activities is factored into the financial projections as part of the operational expenses.
Chrome Temple Micro will operate within a robust compliance and governance framework:
The governance structure is designed to protect investor interests while enabling effective decision-making. Regular reviews of governance practices will ensure ongoing alignment with best practices and regulatory requirements.
Chrome Temple Micro is subject to several market-related risks:
| Risk | Description | Probability | Impact | Mitigation Strategy |
|---|---|---|---|---|
| Market Downturn | General decline in collectible car values due to economic conditions or changing collector preferences | Medium | High | Portfolio diversification across segments, eras, and price points; tactical selling in early signs of segment-specific downturns |
| Liquidity Risk | Difficulty in selling vehicles at fair market value when needed, particularly during market contractions | Medium | Medium | Staggered redemption windows; liquidity reserve; diversified portfolio with varying liquidity profiles; redemption gates if necessary |
| Valuation Uncertainty | Challenges in accurately valuing vehicles due to limited comparable sales or market opacity | Medium | Medium | Multiple independent valuation sources; conservative valuation methodology; regular mark-to-market adjustments |
| Changing Collector Demographics | Shifts in collector interests and preferences as younger generations enter the market | High | Medium | Ongoing market research; inclusion of emerging collectibles in portfolio; focus on vehicles with broad generational appeal |
| Technological Disruption | Impact of electrification and autonomous driving technology on internal combustion engine vehicle values | High | Variable | Focus on landmark vehicles with historical significance; monitoring for "last of the line" ICE vehicles with potential collector premium |
| Currency Risk | Exposure to exchange rate fluctuations when acquiring or selling vehicles internationally | Medium | Low | Selective hedging for significant international transactions; balanced exposure across markets |
The operation of Chrome Temple Micro exposes it to several operational risks:
| Risk | Description | Probability | Impact | Mitigation Strategy |
|---|---|---|---|---|
| Vehicle Damage or Loss | Physical damage to vehicles due to accidents, natural disasters, or theft | Low | High | Comprehensive insurance coverage; secure storage facilities; strict handling protocols; advanced security systems |
| Authenticity Issues | Discovery of authenticity problems after acquisition (non-matching numbers, undisclosed modifications) | Low | High | Rigorous pre-purchase inspection by marque experts; comprehensive documentation review; condition contingencies in purchase agreements |
| Key Person Risk | Loss of critical expertise if key team members depart | Medium | Medium | Cross-training of team members; documentation of processes and knowledge; competitive compensation; equity incentives |
| Vendor/Partner Risk | Poor performance or failure of critical service providers (storage, maintenance, transport) | Low | Medium | Careful vendor selection; regular performance reviews; contingency plans; backup vendor relationships |
| Systems Failure | Technology system outages or security breaches affecting investor data or operations | Low | Medium | Robust IT infrastructure; regular backups; cybersecurity protocols; disaster recovery planning |
| Scale Management | Challenges in maintaining quality and effectiveness as the fund grows | Medium | Medium | Phased growth plan; process automation where appropriate; early hiring ahead of growth needs |
As a financial product, Chrome Temple Micro faces several regulatory and compliance risks:
| Risk | Description | Probability | Impact | Mitigation Strategy |
|---|---|---|---|---|
| Regulatory Changes | Changes to laws or regulations affecting investment structures, managed funds, or SMSF investments | Medium | High | Regular monitoring of regulatory developments; relationships with regulatory consultants; flexible fund structure that can adapt to changes |
| AML/CTF Compliance | Challenges in maintaining compliance with Anti-Money Laundering and Counter-Terrorism Financing regulations | Low | High | Robust KYC procedures; transaction monitoring systems; regular compliance reviews; staff training |
| AFSL Requirements | Failure to meet ongoing Australian Financial Services License requirements | Low | High | Regular compliance audits; dedicated compliance resources; engagement with regulatory consultants |
| Tax Treatment Changes | Modifications to tax treatment of alternative investments or collectibles, particularly within SMSF context | Medium | Medium | Monitoring of tax legislation; consultation with tax specialists; structuring flexibility |
| Import/Export Regulations | Changes to regulations affecting the import or export of collectible vehicles | Low | Medium | Relationships with customs brokers and importation specialists; diversification of vehicle sourcing |
Chrome Temple Micro faces several financial risks in its operations:
| Risk | Description | Probability | Impact | Mitigation Strategy |
|---|---|---|---|---|
| Capital Raising Shortfall | Failure to raise sufficient investor capital to reach efficient operating scale | Medium | High | Phased launch approach; parent company commitment to bridge funding if needed; scalable cost structure |
| Excessive Redemptions | Higher than anticipated investor redemption requests creating liquidity pressure | Low | High | Redemption gates; notice periods; liquidity reserve; staggered portfolio liquidation plan |
| Cost Overruns | Higher than projected operating costs impacting profitability | Medium | Medium | Regular budget reviews; phased expense commitments; shared services with parent company |
| Interest Rate Risk | Impact of changing interest rates on investor demand for alternative assets | Medium | Medium | Positioning as portfolio diversifier; emphasis on non-correlation benefits; performance-based fee structure |
Chrome Temple Micro faces several strategic risks that could impact its long-term success:
| Risk | Description | Probability | Impact | Mitigation Strategy |
|---|---|---|---|---|
| Competitive Pressure | Entrance of new competitors or expansion of existing players into the microsyndication space | Medium | Medium | First-mover advantage; emphasis on track record and expertise; community building; distinctive brand positioning |
| Brand Dilution | Potential damage to Chrome Temple's premium positioning through lower entry point offering | Low | Medium |