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 Post subject:
PostPosted: Sun Jul 26, 2020 10:10 am 
Leading Sire
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Joined: Thu Jul 13, 2006 11:00 am
Posts: 3637
Location: New York City
Hi guys; long time no chat!

Hope you all are well...
I am asking for a friend (no; literally; I wouldn't go with them) who is interested in the above, as a gift for her granddaughter.
She knows I've owned so she asked for my advice.
I would be wary of, especially as they seem to mainstream and geared towards those who know nothing about the sport.
But I thought I'd toss out a query to anyone here who might know any good or bad about them as a company, client, or skeptic.

Many thanks!

All shouting does is make you lose your voice.
----Arrested Development

 Post subject: Re:
PostPosted: Sun Jul 26, 2020 11:30 am 
Grade II Winner

Joined: Sat Jan 20, 2007 5:28 pm
Posts: 1321
They are transparent and list all the fees up front.
They charge a commission on the "appraised" value of the horse so while they might have paid 50K, they will charge a commission on the 150K or so that the horse is valued at. They are trying to mitigate their loss at the buyers expense so yeah it's targeted towards those who just want the experience.
They actually treat it like you are investing in a mutual fund and get approval from the SEC for the listing.

They own 12.5% of Authentic, here's how they value him.

Current horse value: $15,153,750
MRH stake: 12.5%/$1,894,218.75

Total Offering: $2,575,000
Share price: $206/share
Total Shares: 12500

Horse value: $152
Acquisition Costs: $2 - Includes Vet Check, Transportation. and Sales Tax
Prepaid Expenses: $22 - Includes 6 Months Prepaid Training, Admin, 2 Years Mortality Insurance, First Year Stallion Insurance, and Projected Starter Fees for Upcoming Races
Management Fee: $30
So they want 375,000 as a management fee, 275,000 for expenses (the horse goes to stud next year)
Sounds like a good deal for them if they can sell all the shares.

 Post subject: Re:
PostPosted: Sun Jul 26, 2020 1:57 pm 
Grade I Winner
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Joined: Fri Jan 06, 2006 5:33 pm
Posts: 1689
There are a LOT of partnerships out there like that now. Churchill Downs has one. Many simply say 'don't be in it to make money'. And as noted above you won't unless you get a Derby or BC Classic winner. Fees way too high. But then it's the fine print that always gets you. I do have a contact to one or two that I've given some consideration too - all depends what the buyer is looking for. But it's always, buyer beware.


Run the race - the one that's really worth winning.

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