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What is a Bear Trust Syndicate?

A bear trust syndicate refers to a financial arrangement where assets, typically shares or property, are held by a trustee on behalf of a beneficiary without the trustee having any discretionary powers. The beneficiary is the true owner, and the trustee merely holds the asset in their name until it can be transferred to the beneficiary.

In the context of a syndicate, multiple people or parties may come together to pool their resources to buy or hold an asset under a bear trust structure. The trust ensures that the syndicate members (or beneficiaries) retain ownership, while the trustee is responsible for managing the asset until it’s transferred to the rightful owners.

This structure is commonly used in arrangements to streamline the holding of assets for a group.

In a bear trust syndicate, the beneficiaries are the true owners of the asset, even though the asset is held in the name of the trustee. The trustee holds the asset purely on behalf of the beneficiaries, without having any discretionary power over it. The beneficiaries retain full beneficial ownership, and the trustee is simply a legal custodian until the asset is formally transferred.

All members need to be 18 or over and will be required to pass KYC and appropriateness checks before becoming part of a syndicate.
Members now need to be classified as ‘high net worth’ or ‘sophisticated’ in order to be able to syndicate into any CarCrowd offering.

International customers will have to pass manual KYC, which can take up to 10 working days. If you are an international customer, please email support@thecarcrowd.co.uk for details on the documentation required.

Although not guaranteed a beneficiary can typically sell their interest in a syndicate, but the process depends on the specific terms of the trust deed or agreement governing the syndicate. Since the beneficiary is the true owner of their share of the asset, they generally have the right to sell or transfer their interest. The CarCrowd will look but can not guarantee to facilitate this. It’s important to review the trust agreement and consult with legal or financial advisors to ensure the proper procedures are followed when selling out of a syndicate.

This is an illiquid asset however due to the structure there will be a ‘bulletin board’ style ‘member marketplace’ where members of a syndicate can list their share. You should assume that it will not be possible to exit your investment until another member takes ownership of your share within the syndicate.

The asset will be periodically revalued. As a syndicate member you are expected to vote on whether to retain or realise the asset. Once sold, any profit will be distributed among the members. Additionally, every time an offer to purchase the car is received from a serious potential buyer with a price at or above the valuation, this will be brought before the syndicate members for a vote.
In order for the vote decision to be legitimate, a minimum of 15% of the shareholders must vote. A 50.1% majority is required to start the process.

If the decision is taken to realise, there are a number of different outlets for potential sale, including private sale, auction, and the potential for other syndicate members to purchase the asset outright. This will all be overseen by the The CarCrowd.

Assets such as classic cars are Capital Gains Tax free in the UK. International users should consult legislation specific to their locality. The CarCrowd cannot give tax advice or comment on individual tax circumstances. If in doubt, please consult an independent tax resource or a tax professional.

Syndicate members will pay a fixed curation fee to cover the sourcing, provenance checking, valuation and transport of the vehicle as well as any margin.
Furthermore, an operations fee to cover insurance and storage for the first year will also be applied upon membership purchase.

Upon funding, all members must subscribe to a GoCardless annual subscription to cover the ongoing operations fee if they vote to retain the asset after the first year. If members choose to retain the asset following the initial vote, the annual operations fee will be charged each year when voting to keep the asset. If the asset is sold within the first year, the subscription for future annual operations fees will be cancelled, managed by The CarCrowd.

Additionally up to 10% of profits will be charged by The CarCrowd on exit. More information on fees can be found in the information memorandum for each car.

Once an asset is sold, The CarCrowd will arrange for all necessary taxes and fees to be paid by the syndicate. Holdings will then be distributed among the syndicate members.

If after 5 years the asset remains unsold, it could be sold below market value. Of course, your capital is at risk.

In the event that the asset fails to fully fund within 90 days, all invested capital will be returned to the investors with no fees or charges.

Why are these cars for sale if they were previously funded as investments?

These cars have been held by a group of investors or syndicate members who collectively decided to sell the asset. Once a majority vote is passed at the most recent valuation, the asset is offered for sale to the public. This ensures that investors realise the value of their investment and the vehicles move on to their next custodian.

Not always. While many of our cars have been funded as fractional investments, we also list exclusive vehicles sourced directly from our trusted network. Every vehicle, regardless of origin, undergoes the same strict curation, inspection and validation process that TheCarCrowd is known for.

Unless specifically stated, our vehicles do not come with a warranty and are sold on a “sold as seen” basis. Due to the age and collectible nature of many of these vehicles, warranties are not always appropriate. However, rest assured that each vehicle has been thoroughly validated and maintained to the highest standard while under TheCarCrowd’s management.

Yes — test drives can be arranged for serious buyers. A fully refundable deposit is required, and the amount will vary depending on the value of the vehicle. This ensures the security and integrity of these highly collectible assets.

All vehicles have been stored in temperature-controlled, dehumidified facilities with our partners at BOXEDClassics. They have been maintained in line with their recommended servicing schedule by either main dealers or recognised marque specialists to ensure optimal condition and value retention.

Yes, unless otherwise stated. All vehicles are kept in running condition and receive regular health checks. Any vehicle being prepared for handover will undergo final pre-delivery checks.

Absolutely. We welcome independent inspections by recognised specialists or inspection services. We want buyers to feel completely confident in their purchase.

In most cases, yes. We work with specialist finance partners who understand collectible and classic vehicles. Finance availability will depend on the vehicle and individual circumstances.

Yes, nationwide and international delivery can be arranged through trusted logistics partners. Quotes can be provided upon request.

Many of our vehicles can be driven regularly, but some are best suited for collectors, enthusiasts, and occasional use due to age, rarity, or value. We’re happy to help you understand which category a specific vehicle falls into.

Yes. Through our network and industry relationships, we can assist in sourcing rare and desirable vehicles that meet our high curation standards. We can also provide deep-dive provenance reports using our proprietary vehicle research tool upon request to support your purchasing confidence.

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