Syndicates - any advice?

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tigers_eye

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I've been testing the waters about setting up a syndicate to buy a young horse, and have a few people interested. We're looking at between 5 and 7 parties, including ourselves, owning equal shares. The horse in question is only 18 months old at the moment, but I'd like to get my hands on him now before his price goes up or someone else buys him!

Obviously those who've said they might be interested want to see some figures. Sadly my crystal ball is out of commission, and this horse's competition career is some way off, so should I base an estimate on current prices?

What I'm after really is any helpful information from anyone who's either set up or been part of an event horse syndicate. I've read the EHOA's leaflet and there are some excellent points in there. The other thing is I really want to "sell" the syndicate as an opportunity to be part of a top class horse's career, and not for the ultimate aim to be to sell him, though of course this might be the right course of action at some point. Some of the people interested seem keen on it as a money-making adventure, which I think is possibly unrealistic as far as event horses go!
 
No helpful advice at all as zero experience, but I think a syndicate would work better if some parties weren't in it only to make a buck or two, and more for the experience with any money that comes out of it a plesant surprise/bonus.

Good luck with it! Sounds like an exciting 'baby'.
 
I have no really helpful advice, but I would be careful witness a syndicate if some want a horse to d one thing, and some want it to do another, it could potentially get messy... There would obviously have to be a tightly adhered to contract, stating that at the end of the day you will make all final decisions for the horse in question, not majority vote or something similar...

For example, if 4/6 parties of the syndicate wanted your horse as a 5YR old to compete at a certain competition, however you believed it would be detrimental for the horse, it would be a very difficult situation!!
 
No advice about syndicates, but I'd want all parties to be absolutely clear that it is more likely to cost them money than to make them a penny ;). Best of luck though x
 
I hate to say it but I think it would be a dangerous game to "sell" the syndication of a horse that age (or any age, really) as a money making venture. Even the racehorse syndicates don't really do that unless they're working with top flight animals and that's a much more certain game.

What do you have to offer potential members? What do you want from them? Will be you be asking from just purchase price or long term regular committments? What will happen if someone needs out at some point or can't continue to contribute? Are you looking more at friends/family being involved? Tbh, most of the eventers I know who aren't top names - apologies! - have owners who are friends/family/long term clients or possibly the breeder(s) of the horse(s) in question.

I've seen it go very well, I've also heard of a few situations where it's gone very wrong! Look at some of the recent high profile dramas!

I know it's not how things are done in the horse world but it might be worth consulting legal advice, even at this early date.

I do think the first question has to be "What's in it for them?" That's obvious for friends/family or the horse's breeder (this is a very common one in Canada, no idea here) but harder to pin down for strictly business. Of course, if the price is low and the payments very small, you can probably convince people to take a punt on that basis alone. It's might be tougher if you want them to pay out every month.
 
I'd be very reticent to buy into an 18mths horse tbh, there's a long time till its starting a career and anything can go wrong.

On paper it may have the parentage to fly the moon but as we know its no guarantee.

Think it would be hard to co-ordinate circa 6 interested parties and especially ones that one to play an active role rather than silent partners.
 
I'd be interested to hear why you think the number is a bad one, as opposed to higher or lower. We were thinking an odd number would be better so that you wouldn't have a stalemate in a voting issue (say on whether to sell or not to sell). Obviously the higher the number of shareholders the lower the cost for all. We already definitely have people in at least two, probably three countries, being involved.

Like I said I'd really like to find people who want to share in our eventing adventure. The ones interested so far, apart from my dad who lives abroad, all come on a fairly regular basis to watch William at events, and to be honest get treated like owners already, apart from having a say in what he does or doesn't do of course! So yes, friends and family.

The horse in question is very closely related to several good international eventers I've had, and looks the best of the bunch so far, the kind that would probably cost a fortune as a 5-6yo. Of course it's risky, but that is the nature of horses, and I think he is a gamble that's worth it. I know breeding my own has cost more than the asking price for him! The fact of the matter is with Missy coming up to her first competitions we simply cannot afford to run William at the highest level, Missy coming up behind, let alone contemplate finding a 3rd prospect without some outside help.
 
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