Introduction to Racing Partnerships
recent years many investors have found partnerships a most
attractive vehicle for participating in the Thoroughbred
go back to the very beginning of American Racing with the
initial syndication of Americas most famous stallions.
Partnerships today exist with all types of horses, including
broodmares, racing prospects and stallions.
Thoroughbred investments involve risk and the partnership
format inherently spreads that risk amongst a group of investors.
A group of partners pooling together their assets will be
able to participate at a higher level of quality than an
individual may be able to afford for his or her own account.
Most partnerships have an experienced managing partner who
has the capabilities of assessing markets for value, selecting
outstanding quality assets for the partnership and engaging
the services of top farms and trainers for the partnership
and their horses.
to ask When Considering a Partnership
type of partnership?
Is the partnership to be a Limited, General or Limited Liability
Corporation? Each form has its own level of partner involvement
and specific tax implications.
is the background and reputation of the Managing Partner?
What do the references of the Managing Partner and his management
team say? What is the record of their success?
the horses be purchased at auction or by private sale?
How are the horses evaluated for partnership acquisition?
How are assets or potential assets valued? How will they
fees are involved?
How is the Managing Partner compensated (i.e. management
fee and/or commission)? What mark-ups, if any, are involved?
Is there any additional compensation such as front-end or
about expenses and distributions?
How are assessments for upkeep managed? How are earnings
distributed and when?
to the Top
Centennial Farms Management Company, Inc.
New York • Kentucky • Florida • Massachusetts
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