For the first time, a crowdfunding equity partnership has been established in Thoroughbred racing by Little Red Feather Racing (“LRF”). The pioneering partnership has been established under the recently adopted rules set by Title lll of the JOBS Act.
The LRF Thoroughbred Fund (“Fund”) will provide the opportunity for racing aficionados to pursue racehorse ownership under a platform never offered before. LRF will manage the Fund and use the final raise to buy up to six Thoroughbred racehorses, with the intent of racing at top racetracks such as Santa Anita Park and Del Mar. Each investor will own a pro-rata percentage of the Fund, allowing them to hold viable equity in the racehorses offered in the program.
“In the past, we could only offer shares to accredited or sophisticated investors,” said LRF managing partner Gary Fenton. “We couldn't be more excited to open up a partnership to just about anyone who wants to get into the game. For a small investment the enthusiastic fan now has the chance of a lifetime – to potentially own a Kentucky Derby horse with real equity.”
LRF was established in 2002 by managing partner Billy Koch. Starting with one horse, LRF has successfully syndicated over 130 partnerships, managing over 150 racehorses over the past 15 years. Fenton has been LRF's general council since inception and managing partner since 2005.
Bursting onto the national scene in 2004 when Singletary won the $1,500,000. Breeders' Cup Mile, LRF horses have won 197 races from 1,083 starts (18%) and grossed $11,117,080 in earnings.
LRF is enjoying the best 18 months in its history with 47 wins from 206 starts, and over $3,000,000 in gross purse earnings. LRF currently manages multiple graded stakes winner Midnight Storm, who won the $400,000 Grade l Shoemaker Mile at Santa Anita Park, June 14 and the $250,000 Grade 2 Eddie Read Stakes at Del Mar July 17. Midnight Storm's win in the Shoemaker Mile was a Breeders' Cup Win and You're In race and stamped the 5-year-old horse, by Pioneerof the Nile an automatic berth in the $2,000,000 Breeders' Cup Mile at the 2016 World Championships. LRF's Midnight Miley won the $150,000 Grade 3 Ontario Matron Stakes, July 17 and is pointed towards the Grade 2 Canadian Stakes, Sept. 17 for her next start.
As noted by Lucinda Shen in a recent Fortune.com article, “U.S law previously prohibited unaccredited investors-those earning less than $200,000 a year with a net worth below $1 million-from investing in private companies in exchange for equity. Such investors could only fund startup projects such as Kickstarter or Indiegogo in return for a discount for the product itself.”
For more information about Little Red Feather Racing Fund visit: https://www.startengine.com/startup/lrf-thoroughbred-fund-llc
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