By J.N. Campbell
Not just anyone can hire their own personal bloodstock agent for Keeneland September to walk them through that voluminous catalogue and bid at one of the world's signature sales.
Likewise, breeders, owners and agents do not always have access to pools of investors and some are actively looking to add more capital, so they can take money off the table to mitigate risk.
If you hadn't heard, racing a horse is expensive, and speed dating at the sales does not always yield a match.
In the global world market of Thoroughbreds where could those with access to elite equine athletes and the hungry cutting-edge investment crowd meet? And for that matter, who could guide these interested parties and help them navigate everything from the funding process to SEC regulations?
Commonwealth, the micro-share company behind the partnership in 2023 GI Kentucky Derby winner Mage (Good Magic), G1 Dubai World Cup hero Country Grammer (Tonalist) and GSW We the People (Constitution), thinks they have the answer to these questions because they say they know how to harness the crowd. With a multi-faceted track record behind them, the company is leading the revolution to transform partnership opportunities in horse racing. Now the only crowdfunding syndicate in the world with its own funding portal and full platform, Commonwealth can offer anywhere from 5% to 50% of an equine athlete through its website.
Mage | Horsephotos
Most importantly, their new model allows owners to harness a 20,000-strong community–hence the company's binding moniker–which is a direct avenue to those who want to fund a racehorse. Guiding these owners through the proprietary fundraising process allows them to list and sell shares to the public. Commonwealth makes it happen.
“Our goal is simple–giving owners and breeders access to capital partners for high-quality racehorses and continuing to provide our customers with the once-in-a-lifetime opportunity to take the ride of a lifetime,” said Commonwealth co-founder Chase Chamberlin.
Through a Portal Darkly
According to Chamberlin, who co-founded Commonwealth with his good buddy a few years ago–finance and start-up veteran CEO Brian Doxtator–the challenge that has existed are SEC regulations.
The rules force companies that want to offer shares in horses to purchase a 51% stake or higher, and most importantly they must have complete management of the horse. That translates to buying fewer horses, which means less of a chance of finding a bona fide star. To put it another way, the risk can be high since enormous amounts of cash are needed and in the end it can be tough to get approval.
We the People | Sarah Andrew
The original model that Commonwealth started with worked, but it did limit the number of offerings and rolling them out became cumbersome. Still, stellar results like Mage were home runs. Since 2022, Commonwealth collected a pair of Grade I wins, five GI placings and they hit the board in 13 graded stakes with a stable of less than 15 runners.
“We've been incredibly fortunate not only to win races like the Dubai World Cup and the Kentucky Derby, but also to compete convincingly in graded stakes worldwide,” said Chamberlin. “We're even more excited about the new partnerships and horses that will develop through our new model, which allows owners to offer their horses on Commonwealth. It's not just about the horses you choose, but the partners you make the climb with.”
Up until this year, offerings have fallen under SEC Regulation A+ and that is where the red tape has blocked widespread owner opportunities. Months can pass by under Reg A+, and in the end, the SEC can issue a denial which can derail all the hard work Commonwealth poured into developing a specific deal. On their website, the phrase “coming soon” does not particularly age well in a business like this one.
“Our former regulatory framework worked great for our members, but we knew there was a better way to increase the volume of high quality racehorse offerings for them,” he said. “Challenges spark innovation, and these recent challenges have led to a faster, simpler model that unlocks entirely new partnership opportunities.”
The Right Owner For the Crowd
The freeing mechanism that Commonwealth has switched to is through Regulation CF, which is what is called crowdfunding. Under their new process Commonwealth has become the only syndicate that can crowdfund a minority position and that is where offering 5% to 50% on their platform comes in. What could take months before, now can be flexibly be cut down to just two to three weeks.
Parenting | Benoit
According to Chamberlin that translates to being able to broker even more timely partnerships with industry titans. Elite horse owners can enter into their very own syndicate for a specific amount and it allows them to maintain their management rights to their equine athlete. The ability to take money off the table is an attractive opportunity, especially if they have a Derby Trail participant or a hot yearling prospect by a leading sire.
Those types of horse offerings generate interest among the crowd and it turns Commonwealth's community into shareholders instead of burdening them with the onus of significant ownership. In turn, it's the platform who manages finances, operations and marketing, and keeps customers updated so owners can focus on their bread and butter–racing, training and managing equine athletes.
“By switching to Regulation CF, we've cut the process down to weeks, not months, while letting owners keep control and offer 5% to 50% stakes,” Chamberlin said. “It's a game-changer for striking fast partnerships with industry giants and those new to the game, and we handle all the logistics so owners can focus on winning races and enjoying the magic of horse racing.”
Chase Chamberlin with Kim Valerio | Goffs
How They Meet
The test run for this crowdfunding initiative arrived in 2024 when Gandharvi Racing offered a 25 percent stake on Commonwealth's platform in 'TDN Rising Star' Parenting (Justify). The $507,000 offering went like hotcakes and sold out in an hour.
Like all of their offerings at $50 a share, the platform just funded Asean (Ire) (Ten Sovereigns {Ire}) for Ocean Reef Racing, who is in-training with Philip D'Amato, and full investment in a yearling named Coco G (Caravaggio) that started last week is already nearly complete. That filly was selected by Kim Valerio at this year's Keeneland January Sale. More opportunities are already in the pipeline with Parenting's three-quarter weanling brother by Justify up next and a partnership with Team Valor on a filly by Gun Runner out of the GISW Oleksandra (Aus) (Animal Kingdom) is in the offing, just to name a few.
Commonwealth's master plan will give its community of investors the chance to put their money into a Thoroughbred that is headed to race and what Chamberlin says is a real chance of winning at the highest levels. Any horse globally can be considered, which broadens the pool of owners and shareholders even more.
Chase Chamberlin with Parenting | Benoit
“Our first offering flew off the shelves, selling out in just an hour,” he said. “With $50 shares, fans of all income levels are now backing elite horses with real opportunity at top-tier wins. It's not just investing–it's a front-row seat to racing success. And don't underestimate our community; we have quite a few members who could afford to buy stables of their own horses, but they enjoy the ease, fun and low-risk of racing with Commonwealth.”
With racehorse ownership, the implication is that a high-level of financial commitment is around every turn. According to Commonwealth, by streamlining the process, accessing the top bloodlines and doing so on a budget, all the while extending a hand to owners, they have the potential to offer a massive win for the sport.
Providing a one-of-a-kind experience, Commonwealth says their new funding platform for owners around the creation of syndicates is even more exciting and they know how to harness the crowd.
We won the @KentuckyDerby
Commonwealth is the most exciting team in sports. Hands down. @joincmnwlth pic.twitter.com/ENL0uQ8XCe
— Brian Doxtator (@briandoxtator) May 8, 2023
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