How do syndicates work?

[SWE]

I've never quite known how they've worked?

If i wanted to be involved in a syndicate what would my options be?

To pay a weekly/monthly cost and be involved with said horse and its progress?

Do you pay a lump fee initially and partly own the horse? What happens if one or more of the syndicate want to sell?

How does being part of a syndicate differ from owning shares of a horse?

Sorry lots of questions but i really dont understand the usual model and would find it really helpful

 

[be positive]

There are many different options available from "owning" a tiny part of a racehorse or group of horses to being a part owner within a small syndicate that get together to buy their own horse and numerous in between, all will have different set ups and I am not sure there is really an answer to your questions other than to say do your research in a route that appeals.

It would help if you had said what type of horse you were interested in being involved with as there will be more choice in the racing world but still plenty of ways to be involved in other aspects of the equestrian world.

 

[ihatework]

There are a few different models.

The one I was involved in setting up was Eventing. It was an equal share syndicate with capital buy in. Then a fixed priced monthly running cost. The horse was linked to rider (so syndicate members couldn’t move it to a different rider). Each shareholder took their % of the sale price if/when sold and % of prize money (laughs hollowly!).

If you wanted out it was at the point of sale or you could offer your share back to the syndicate or open market. If you needed out immediately then the share could be relinquished back to rider but you lost your capital.

Other models work on a lease basis where you don’t buy in but lease ownership usually for an annual fee.

 

[Orangehorse]

As above, they all work differently. Do you really want to own a horse, or would being a member of a Rider's club be enough?
At least with racing there might be a small chance of getting some prize money but with eventing, dressage, and even show jumping I expect the money side is all one-way unless the horse was sold for mega-bucks at some stage.

I think you would need to read the small print very carefully and think of all the "what if" awkward questions.