How does a horseracing partnership or horseracing syndicate work? There are companies that run horseracing partnerships and syndicates. These allow several people to own the same racehorse. For a person to join in with a horse racing partnership, the person must buy into the partnership by buying a share of the horse. The share is a percentage of the cost of the horse and sometimes a markup of that cost as determined by the horseracing partnership company.

If you become a racehorse partner, the costs you pay will be determined by the share that you own. This means that the expenses each month are divided according to the size of each partner?s share of the partnership. The shares that the partners own are each a percentage of the total ownership of the horse. Not all of the shares are the same size. Someone with a larger share will pay more of the expenses than someone with a smaller share. But, someone with a larger share will also earn a larger share of the profits.

There are different rules in place for every horseracing partnership or syndicate out there. Each group is governed by either the company that runs the partnership or by the managing partner. There are so many possibilities involved in these partnerships, doing some comparison shopping is recommended. To do this properly, ask several partnerships for data in order to find out what you have to gain from each. By comparing syndicates before making your decision, you will be making a far more informed choice.

Some other things you need to know when comparing syndicates include:

* What are the highest and lowest ownership percentages possible?

* Is there a management fee involved? If so, what is the amount? Who is the partnership?s current managing partner? Are the other owners able to contact the managing partner?

* Where does the partnership get the horses? Are they purchased at auction, from private sales or are they bred at the stables?

* Do you have access to see the horses pedigree information?

* Does the syndicate you’re interested in race nationally or only regionally?

* Which racetracks are they planning to use?

* Will the syndicate or partnership help you to get your license?

* What kind of documentation will the partnership give you to help with tax preparation at the end of the year?

* Are racehorse partnership shares based on a percentage of the actual purchase price of the horse or do they add a mark-up?

* How long is the contract for co-ownership?

* Is insurance included as part of the monthly expenses?

* How do you leave the partnership should you choose to do so?

As this list shows, there are many considerations when picking the best horse racing partnership. As you decide between the available syndicates, ask plenty of questions and use a checklist. This will allow you to easily compare the syndicates to each other and to make the best possible investment decision.

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