FM round-up: Alternative investments of the month:
Breeding Capital is offering private investors the opportunity to co-invest to buy and trade a portfolio of thoroughbred horses from around the world. “It is not dissimilar to a private equity fund in terms of structure. The managers only make money if the end-investors make a 25% return,” says William Sporborg, managing director. The fund is capped at £5 million ($8.9 million) and investors can contribute £200,000 a year with a minimum of £10,000. The underlying assets of foals, yearlings and mares will be sold in 2010 when the fund is wound up and money is returned to the investors. Sporborg says it will appeal to high net-worth investors who are interested in racing and sports betting and looking for an alternative way of investing.