Breeding Capital, a UK-based finance company, is targeting investment in a novel alternative investment: thoroughbred racing horses. The ...

Breeding Capital, a UK-based finance company, is targeting investment in a novel alternative investment: thoroughbred racing horses. The Newmarket-based company has already raised £2.5 billion ($4.4 million) in a fund designed to acquire and trade a portfolio of high quality racing horses. William Sporborg, managing director, Breeding Capital, told WealthBriefing: “It’s an alternative asset class that would normally cost a fortune to be involved in, not to mention the need for lots of specialist experience. “Despite the financial benefits we can bring investors, investing in racing horses will be classified as an alternative investment and therefore tax efficient under self invested person pension plans.” Mr Sporborg said Breeding Capital has targeted to raise £5 million in the fund by the time it closes at the end of April. “We will buy five or six top quality racing horses at an average cost of £500,000 a piece,” he said. Mr Sporborg added: “We believe it will be a brand of choice for high net worth individuals. But there are a wide range of investors. For example, we have some high earners from the City of London and one investment from a blacksmith who has been working with horses all his life.” The minimum investment is £10,000 and so far over 100 people have put in an average of £25,000 each. Breeding Capital has sold 139 horses in the last 11 years for an average of £196,000 each. The market for thoroughbred racing horses is growing rapidly: at the twelve leading high end bloodstock sales in Europe and North America in the second half of 2005, over 12,000 animals were sold, with an average sales value approaching $100,000.