LRF Thoroughbred Fund
Thoroughbred Racehorse Fund
Sports & Recreation
Woodland Hills, CA
The LRF Thoroughbred Fund provides the opportunity for anyone to pursue racehorse ownership with as little as $500.
LRF will manage the Fund and use the proceeds to buy up to six thoroughbred racehorses with the intent of racing at Santa Anita Park and Del Mar. Each investor will own a pro-rata percentage of the Fund, and thus a pro-rata percentage of each horse.
The Fund will be managed by one of America’s largest thoroughbred racing clubs: Little Red Feather Racing (“LRF”).
LRF gained prominence in 2004 when its horse Singletary captured the $1,500,000 Breeders’ Cup Mile. In 15 years, LRF horses have won 192 races from 1,063 starts (18%) and grossed $10,735,470 in purses (through June 30, 2016).
Recently, LRF has enjoyed the best 18 months in its history with 43 wins from 192 starts and over $3,000,000 in gross purses. LRF currently manages stakes winners Midnight Storm, Chati’s on Top, Bellamentary, Sheer Pleasure, and Midnight Miley.
LRF believes it has the industry networking ability to purchase almost any racehorse that is for sale.
Once purchased, horses will be trained by one of LRF’s trainers and prepared for their first race for the Fund.
LRF will communicate the horse’s journey with its investors. This “inside the locker room” communication provides knowledge (and entertainment) to people who are new to ownership and those who have owned before.
LRF will also provide an accounting summary of all activity and, if applicable, make a distribution of available proceeds to the investors.
In addition to equity ownership, investors also receive the perks of being “inside the clubhouse.” These perks include box seats to all fund races, visits to the horses in their barn, invitations to watch morning workouts, etc.
Little Red Feather was established in 2002. It is California’s largest Racing Club, with over 300 active partners. Over 50% of LRF syndicates are made up of previous partners.
It captured the GI Breeders’ Cup Mile with Singletary in 2004, and it sold GI winner Egg Drop for $1,900,000 at the 2014 Keeneland November sale.
The fund earns fees in 3 different ways: 10% on the initial raise; 10% of the gross purses or revenue received; and 10% on the subsequent sales of its horses.
Once an asset is sold or purse monies are earned, funds will be distributed to investors and/or used to acquire additional horses. On or around December 1, 2017, they will determine which horses will be sold or kept in racing.
There are no further costs once you invest — in other words, investors are not responsible for the ongoing costs of training or operations.
You could potentially make money here — but as the fund says in its materials: “This is a high risk high reward investment. LRF sold a horse at auction for $1,900,000 that originally cost its partners $95,000. LRF has also purchased a horse that unfortunately never ran. With over 150 horses managed the only honest thing we can tell you is your investment will probably fall in between those two scenarios… and you may have the time of your life regardless of the ultimate financial result.”
For more info about how the funds will be used and potentially disbursed, review all the materials on StartEngine.
William Koch – Managing Partner
Billy founded LRF in 2002, has 20 years experience racing and managing thoroughbred horses.
He is a past board member of the Thoroughbred Owners of California, and currently sits on the board of Thoroughbred Owners and Breeders Association.
He earned his BA from Northwestern.
Gary Fenton – Managing Partner and CEO
Gary has been LRF’s general counsel since inception, and its CEO since 2005.
Formerly, Gary worked as an entertainment attorney for such companies as William Morris Agency and Cersey Werner.
He earned his BA from USC, and his law degree from UWLA.