Yearling Pin Hooking Partnership

 

Renpher Stable will be targeting a few yearling sales this fall. The intent is to package between one and three yearlings as a single partnership. One cost for up to three horses. The purpose of the partnership is to re-sell, or "Pin Hook" these acquisitions during the Fasig Tipton Mid Atlantic 2yo In Training Sale, in May of 2013. The horses will go to sale with a reserve set to cover cost to date. If the reserve is not met, or if a decision is made to withdraw any of these horses, we would retain ownership with the intention of racing them as early as their 2yo season.

Cost

Since we presently do not know the end result in terms of number of horses in the partnership, we can set the initial cost based on a maximum of three horses. We have set a "not to exceed" budget of $20,000 total purchase price for up to three horses. As for monthly expenses, we have set an estimated cost per month of $2000 per horse. This equates to $20 per 1%, per horse. $60 per month based on the maximum three horses at 1%. We expect to purchase the yearlings in October with the intention of selling in May of 2013. Therefore, we would have roughly 8 months of expenses. Initial cost is as follows, per 1%:

The initial payment of $380 per 1% buys 1% of all yearlings purchased. You own 1% of the one, two or three yearlings included in this partnership. If Renpher Stable purchases less than three yearlings, the balance of the $200 acquisition portion is credited back to you.

Monthy costs are estimated based on our past experience. Partners receive a monthly statement showing line item by line item expenses. The total cost is deducted from your account balance creating a new end of month balance. Partners are aware of every cost, every step of the way. Not only by monthly statements but information specific to every horse is contained in our daily e-mails.

As the first three months of this partnership concludes, Renpher Stable will ask for additional payments as required to sustain monthly costs through May 2013. This remains in line with all of our partnerships which require a "three month cushion". The "cushion" allows Renpher Stable to have capital on hand to pay our bills effectively without delay.

It is possible the partnership will determine one or more of the yearlings is deemed "not for sale". Several factors can lend into this decision. Again, partners will be kept continually informed of status.

The first yearling sale we are targeting is Fasig Tipton, Timonium, MD on October 1, 2012. Partners are not only invited to attend, but are encouraged to be on hand during the selection process.

Reserve shares now! Don't get shut out.

Contact Bob O:

bob@renpherstable.com