Calling All Investors For New INS Scheme

INS CEO Cathal Beale | Racing Post

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Just six months into his role as CEO of the Irish National Stud, Cathal Beale has not only added two significant stallions to the stud's roster in National Defense (GB) (Invincible Spirit {Ire}) and Decorated Knight (GB) (Galileo {Ire}), but he is also launching an interesting new bloodstock investment scheme. The stud plans to purchase six high-end in-foal broodmares at the current and upcoming breeding stock sales for an estimated value of €400,000 and offer 25 shares to prospective investors on a first come first served basis. The stud will retain 25 shares in the scheme, but in return will provide six nominations for the mares in 2018 including three to their flagship stallion Invincible Spirit, who stands for a fee of €120,000. An upfront payment of €20,000, which includes a €4,000 annual fee to cover expenses such as keep, veterinary costs, etc., is sought from investors to join the scheme which will commence on Jan. 1, 2018 and will  end in December of 2021, when all stock will be liquidated.

“The plan is to sell the foals each year or if the scenario arises where we think the foal might be best kept another year then we will offer it as a yearling but at no additional cost to the investor,” explained Beale at Goffs on Tuesday. “I think the biggest selling point to this scheme is the three Invincible Spirit nominations we are going to put into it the first year. That also provides the mechanism for the INS to have equity in the scheme. So we will sell €400,000 worth of shares and then put €400,000 worth of nominations into the project so we are fully invested ourselves.”

In year two, the scheme will require investors to contribute €4,000 per annum, per share, thereafter towards the cost of stallion nominations which will not necessarily be restricted to stallions on the INS roster. At this stage however investors should be in line to receive a dividend from the proceeds of selling the foals that were purchased in-utero. Given the calibre of mare Beale and his team intend to invest in, the opportunity for a relatively quick and positive return on an initial investment is quite fair as was evident in the sales ring this week with so many foals with the right credentials attracting a premium.

As the Irish National Stud is state-owned, a certain responsibility rests on the stud to promote the merits of the bloodstock industry to the general public and Beale is keen to cast his net wide in the search for people to get on board the new venture.

“This scheme is open to anyone, is fully transparent and we will be buying the mares over the next few weeks so we invite people to indicate an expression of interest with no obligation to follow through,” he said. “Those interested can come and see the mares before making a final decision.”

The scheme is also a natural fit for the stud given its remit to keep developing its reputation and income streams as both a stallion farm, tourist attraction and a vendor of high quality foals and yearlings.

“We are going to be buying the mares regardless as its part of the stud's strategy to continue to build up a high-class broodmare band so we thought it would also serve as a way to give interested people a part of the action,” said Beale.

The Irish National Stud launched a Racing Club last year, something that gained a lot of traction for a modest outlay and Beale sees this venture as a natural progression for those interested in a higher level of investment that offers the relative risk and reward associated with such ventures.

Said Beale, “The racing club is a €2,000 investment that gives people an opportunity to lease a number of racehorses so this is in essence a step up from that and allows someone to acquire equity in a portfolio to deleverage their risk.”

Beale is hopeful to get the ball rolling at Goffs Thursday and will be on hand to discuss the scheme with any interested parties.

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