CTR is constantly looking for horses that fit our specific partnership / portfolio goals. We expect to form 2 – 4 new & diverse partnerships each year, with each partnership consisting of 2 – 4 horses. Each partnership will be its own LLC. If you are interested in one or more of these partnerships, CTR will ask you to fill out an investor questionanaire and to review and sign a subscription agreement to become a member of that partnership. Horses may or may not have been purchased prior to forming each partnership.

Our goal is to have a maximum of 20 investors per partnership, or a minimum share of 5%. We expect our initial portfolios to be in the $400,000 – $600,00 range, so minimum initial investments would be $20,000 – $30,000.

While CTR fully expects to race at the top tracks on the east coast, midwest and west coast, we will ultimately use a disciplined process to determine what is best for each horse. We will leverage our expertise, industry network, and analytics to help inform the distance, surface and levels of races that best position each of our horses to reach their maximum potential. We also look at the purse structures and historical condition books to identify the racetracks that could be best suited for each horse. Once that framework is established for each horse, we will identify and interview a short list of potential trainers that have historically had success with similar horses at those venues / circuits AND that fit the needs to support our partnership.

There are a number of expenses that go into maintaining racehorses. Training fees are typically the largest expense, but other expenses include veterinarian fees, shipping, purchase / sales commissions, race nomination / entry fees, blacksmith, boarding, insurance, licensing, and jockey fees. Costs also vary depending on where the horse races, but we estimate annual expenses to be in the $45,000 – $60,000 range.

Owning thoroughbreds is a highly speculative venture. No assurance can be given that your investment will be recovered or that any profit will be realized. Horses are live animals prone to injury, illness, and various ailments. The horse will be trained by a professional trainer for racing and entered into racing subject to health and ability. Even without ill health, some horses perform better than others. With all this said, investing in a partnership allows you to limit your risk compared to owning a horse on your own. CTR also leverages our vast experience and analytics to try to reduce risks wherever possible.

Emails updating horses’ activities and plans are sent regularly to our partners. We also hold quarterly meetings for each partnership to discuss progress, financials, and plans going forward. Partners also can connect with the CTR community as well as the racing community through unique events and race days.

The most common ways for partnerships to conclude are 1) if the horse is sold, 2) if the horse retires, and 3) if the horse passes away. Dissolution of the partnership typically takes about 45-60 days after these events, and the net balance in the account is distributed to the LLC member after satisfying all outstanding obligations.

The initial capital contribution includes the owner’s interest in the partnership as well as all routine training/maintenance costs for a period of time (typically 3-6 months). Need for further capital contributions are evaluated every quarter, and partners will be notified 6 weeks in advance of a capital call. All capital contributions are credited to the LLC account. Distributions occur when there are excess funds in the account. Chivalry will notify owners if capital is being distributed.

CTR will use a certified CPA experienced in the thoroughbred industry. K-1 forms for each LLC and member are supplied by mid-March each year.

Chivalry horses are insured for mortality at purchase value, and each horse will have a general liability policy. We review our insurance needs, valuations and premiums on a quarterly basis with our insurance advisor and make adjustments as necessary.