Call us crazy. Own half a horse? Yes, that is the new path we have entered when we agreed to purchase 50% of Cacacha de Tres Coracoes, a yearling filly in May of 2014. It’s an international agreement as the mare will stay in Brazil with owner Ronaldo Ribeiro Tavares of Haras Tres Coracoes.
This co-ownership concept is very common in Brazil. At horse auctions similar to Thoroughbred sales here in the U.S., often one owner will sell 25% to 50% of a breeding animal. That gives the co-owner the right to products (either semen or embryos) every other year. The co-owners share the costs and hope like all investments – to make money! The horse market is lucrative in Brazil with horses still being an integral part of society and a status symbol as well.
Even though she is young, we believed she had the potential to win at a national level in Brazil, making her products more desirable and expensive. We are taking the chance and investing in a young mare now to get the best price point. If we had waited and Cachaca does win at the Nacionals, we could probably not afford to buy half – or it might not be offered for sale. Our belief was verified in July 2014 when her half-sister won Champion Mare in the Marcha Gait and Champion of Champions at the National Show.
Cachaca is the daughter of Fator da Cavaru Reta, a top, sought after palomino Marchador stallion in Brazil. After visiting the farm of Tres Coracoes, we were impressed by the breeder’s thoughtfulness in breeding, and his care for his animals. The training staff were kind to the horses. Plus, we like the name! (Cachaca is a Brazilian rum.)
The benefits of the sharing ownership concept:
- The investors now have more of a pool of money to promote and campaign their horse and to advertise the horse to make more money from the offspring.
- As an investor, you could get rights to products or offspring if that is something you desire.
If you love horses, but cannot keep a horse of your own, the investment allows you to share the spotlight, participate in all of the fun events, but not worry about the day-to-day care and feeding of the horse. Think of the partners in California Chrome, the Kentucky Derby and the Preakness, the ultimate experience for both of them.
- In the Marchador breed (and perhaps others as well), you are sponsoring a new breed that is making history in its march to go global. You are contributing to history. You are MAKING history.
The downside, of course, is that you may not make any return, either in the short-term or ever. But that is the nature of investments. You can protect yourself by doing the research on the market and on the horses, and picking a partner that is proven and successful already.
Interested in getting started with the Marchador breed? We would love to help you explore this co-ownership option or other options to help us out with starting up the breed. We have plenty of ideas!