Why Thoroughbred Breeding Stock?

Make Money

Two Ways

Thoroughbred breeding assets are one of the rare asset classes that can produce wealth and income

1

Breeding Assets Can Increase in Value Over Time

2

Annual Cash Payments as Assets are Leased or Declare Dividends

Own Breeding Stock

Diversify your portfolio with an investment in a superior, long-term asset class

Cash Flow

Earn annual cash yields from leasing assets to breeders and collecting dividends

No Headache

We handle all of the details from asset management to paperwork and payments

How Do Thoroughtbred Breeding Assets Produce Returns

Stallion Shares and Lifetime Breeding Rights (LBR) carry the potential for yearly cash distributions over the life of the stallion because of the yearly nominations to the stallion which come with the Share or LBR, in addition to a final cash-out value upon the sale of the entire Share or LBR.
Stallion Shares are typically priced in such a way that a shareholder can recoup their initial investment over the first four years of the stallion's breeding career, whether or not he eventually proves to be a successful sire. This is down side protection for the asset holder.
Lifetime Breeding Rights are typically priced in such a way that the LBR holder only pays a slightly higher price for the LBR than the value obtainable by the LBR holder in the first year or two years of the stallion's breeding career, wheather or not he eventually proves to be a successful sire. This produces upside potential for the asset holder.

Asset Appreciation Examples

Lifetime Breeding Rights in current leading stallion Into Mischief were originally offered for $25,000. Five years later, a single nomination was worth $30,000, and today - eleven years later - a single nomination is worth at least $225,000. The value of the entire LBR appreciated to $350,000 after seven years, $400,000 after eight years, and would be worth even more than that today.

War Front and Tapit (leading stallion assets) have increased in stud fee from $12,500 to $250k+

Laoban retired to stud in New York for the 2017 breeding season and single nominations were originally valued at $7,500. After the success of his first runners in 2020. Laoban was relocated to Kentucky where nominations were advertised at $25,000, and traded privately for around twice that.

Malibu Moon initially stood in Maryland with single nominations valued at $3,000. Four years later, he was relocated to Kentucky where a single nomination was worth $10,000, and the next year it was worth $60,000, and peaked three years later at $95,000.

A 33% stake in three-time leading sire Tapit was purchased upon his retirement for $3 million, at a time when a single nominations were valued at $15,000. Ten years later, those nominations were valued at $300,000 apiece, and that 33% was worth $40 million.

Sources for these
data points: www.bloomberg.com/news/articles/2015-04-30/meet-the-300-000-a-pop-stud-that-s-dominating-u-s-horse-racing www.bloodhorse.com/horse-racing/articles/123902/the-upside-of-into-mischief www.racingpost.com/bloodstock/spendthrift-and-breeders-sharing-the-upside-with-into-mischief/341145

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