Centurion Thoroughbreds is a newly formed horse partnership, launched by Robert Mulligan and Daniel Freeman with the aim of enjoying racing and hopefully generating returns from buying and developing young horses. Giles Morland has agreed to support the venture, acting as chairman of the partnership, as he has done for the highly successful Manton Thoroughbred partnerships. As with the Manton partnerships, Sam Sangster will act as our bloodstock agent and Brian Meehan as our trainer.
The essence of the partnership is as follows:
With six horses it offers a great diversity of what we can buy so we wouldn't be just buying one type of horse, this diversity also helps mitigate the downside risk. For example, from the Doncaster sale, the first two horses we bought would be your early season types, with the season stretching from late March to the end of November you want certain types for each part of the season. This would be ranging from your early precocious two-year-old to your late blooming middle distance two-year-old towards the end of the season, possibly three-year-old next season.
The thought process behind buying six horses is that you get plenty of racing throughout the year with your early horses starting the first part of the season they will continue to race throughout the season. We will then introduce new horses as we go along, not only does this spread the risk but it provides a lot of racing and a lot of fun for all the partners with opportunities to go racing in some of the top tracks i.e. Ascot, Newmarket, Newbury and the alike.
The exit strategy:
The bottom line is, the partnership is set up for exit strategies. We buy the horses with an export market in mind, the main export market for the UK is Asia, US and the UAE, premiums paid for high class two-year olds can be ten times the purchase price.
Once a horse is believed reached its peak and top price we will look to sell. In year one we look to cover our investment with any surplus paid out to the partnership as a dividend. From any sales in year one we will use a certain percentage to cover costs of year two which may consist of one or two horses we may decide to keep as three-year olds.
In short, Sam, Brian and Giles have spent considerable time courting potential buyers all of whom know they will exit at the right price. The expected time frame for the investment is 2 years with an option, horse dependent, of going to three years. However, we forecast it to be a 2-year investment horizon