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18th December 2017

Stable Connect

Stable Connect (SC) Ltd is the holder of an Australian Financial Services licence (AFSL #: 336964) allowing it to undertake the promotion and management of Horse Breeding and/or Racing Syndicates of any size and capital value. We offer a full range of management, consulting and support services to Thoroughbred Breeding and/or Racing Syndicates.

We also focus heavily on supporting investors by ensuring their investment in bloodstock is well managed, protected and fairly treated.

We will primarily focus on assisting our clients in three key categories of syndication:

Typically stallion syndicates mainly involve the syndication of Stallion shares and/or lifetime breeding rights.

Traditionally such stallion syndicates are structured into 40 or 50 shares. Each shareholder is usually entitled to a nomination each year to the Stallion including “free-return”. There may also be bonus nominations in earlier years depending on the deal. Shareholders may also be entitled to a dividend (should the revenue of the syndicate exceed relevant expenditure). The rules of the syndicate are covered by a Stallion syndicate deed.

The Stud is also entitled to Stallion standing rights (e.g.: 12 nominations to the Stallion). These rights are in consideration for the Stud standing and marketing the Stallion and their duties and obligations are covered legally by a Stallion Standing agreement. These fees are agreed in the Stallion standing agreement.

Stable Connect may act as the Syndicate manager and Responsible Entity for Stallion syndicates.

Prospective purchasers of Shares in any Stallion syndicate should receive a Financial Services Guide (FSG) and Product Disclosure Statement (“PDS”) or Information Memorandum (IM).

General Advice

Our related service providers Stable Financial and Stable Legal are able to draw upon its vast experience and provide advice on any aspect of stallion ownership including:

  • Review and recommendation regarding stallion contracts
  • Tax structuring regarding stallion investment e.g potential use of SMSF
  • Managing investors’ interests in stallions
  • Assisting studs meet their obligations

Our involvement has included professional support in the following stallions: Americain, Myboycharlie, Master of Design, The Factor, Bel Esprit, Star Witness, Akeed Mofeed, It’s a Dundeel, Trust in a Gust, Unencumbered, Puissance De Lune ect.

The size, scope and structure of Breeding Funds will vary greatly based on the objectives of those involved in the venture. The rules and regulations of the Fund are usually covered by a Unit Trust Deed.

There will be a bloodstock management agreement between the Fund and the appointed Bloodstock Managers (usually a Stud) which will detail the relationship between the two parties and the responsibilities and rights therein. The appointed Bloodstock Managers will have the right to divest and acquire bloodstock within prescribed limits as agreed. The fund will be able to terminate this agreement upon minimum standards not being met.

The Bloodstock Managers will be responsible for all the day to day bloodstock management activities, include the following:

  • assisting with the initial marketing and distribution strategies of the syndicate
  • inspection and purchase of bloodstock
  • management of bloodstock
  • liaising with trainers and other service providers
  • organising member functions i.e.: stable visits, stud visits
  • communicating information to investors

The Bloodstock Managers will be entitled to specific remuneration for their efforts and it is envisaged that success based remuneration will be included.

The Funds should be finite. However, at completion, there should be an option to roll a successful fund into a new fund for a further term.

Information memorandums or relevant PDS’s will be prepared for perusal by interested parties.

Example Clients:

Stable Connect is the Trustee of the Swettenham Stud Breeding Venture No1

Swettenham Stud Breeding Venture Information Memorandum

Stable Connect is an approved promoter and works closely with the lead regulator, Racing Victoria Limited (RVL).

Stable Connect’s AFSL also allows it to appoint authorised representatives i.e. racehorse syndication companies. This relationship allows racehorse syndicators to undertake the promotion of Lead Regulator Approved Horse Racing syndicates within the scope of ASIC Class Order, CO 02/319 under our supervision.

The benefits of being an Authorised Representative of Stable Connect are:

  • Being associated with an organisation renown for its integrity and professionalism,
  • Coverage under our Professional Indemnity insurance at no extra cost,
  • The ability to advertise horses for syndication,
  • Access to compliant syndicate documents,
  • Access to a procedures manual which will ensure compliance with the Corporations Law when followed,
  • Access to numerous professionals such as lawyers, auditors and accountants.

Racing Victoria – Steps to an Authorised Representative Permit (June 2015):

  1. Completion of the Promoter Application Form (signed by each Director and Shareholder)
  2. ASIC Extract confirming the Authorised Representative Permit number
  3. Copy of the Certificate of Company/Entity Incorporation
  4. ASIC Company Extract (outlining each Director and Shareholder – and the shares held)
  5. Comprehensive 3 to 5 year business plan (including a resume-style history of the Directors and Shareholders)
  6. An expansive projected profit/loss and cash flow statement, including potential horse purchases and related income and expenses (itemised)
  7. Two (2) x racing industry character references (referring to the entity or the principal of the entity)
  8. Three (3) x industry supplier credit references (referring to the entity or the principal of the entity)
  9. A Credit Report from an accredited reporting agency (from each Director and Shareholder)
  10. Bank statements for the preceding six (6) months (relating to the entity or the principal of the entity)
  11. A statutory declaration from a CPA or CA (Annexure 2 of the attached Promoter Application Form)
  12. Evidence of Professional Indemnity Insurance or Investments Managers Insurance (relating to the entity)
  13. National Police Record Certificate (for all Shareholders/Directors of the business)

Racehorse Syndication

Our current authorised representatives are:

  • Spicer Thoroughbreds
  • Matchem Racing
  • G1X Pty Ltd
  • OTI Management
  • Pulse Racing
  • Roll the Dice

Our stated mission is “To operate a syndication related business that is renowned as the leader in strong corporate governance, independence, integrity, transparency and professional services in promoting and managing Thoroughbred breeding and racing syndicates in Australia.”

The directors are Adam Tims and Tim Johnson.

We look forward to “Bringing Horse People Together”.

Why Stable Connect?

The main advantage of Stable Connect is its ability to draw together expert advice under one roof.

Our Melbourne office boasts Stable Financial expert accountants to the horse industry and Stable Legal expert lawyers to the horse industry.

Other benefits are:

  • Our Integrity and professionalism
  • Independence of our directors and shareholders
  • Location of office in CBD Melbourne
  • Access to documents and precedents
  • Access to Studmasters and other industry stakeholders
  • Access to the wide ‘Stable’ network of owners, breeders and key industry stakeholders
  • Syndicates managed by us will have greater attractiveness to investors due to the professional financial management of all Syndicates.

Why Syndication?

The benefits of syndications are numerous and varied dependant on what type of participant in the syndicate you are and what type of syndicate it is. Generally, horse syndicates allow like minded individuals to come together and invest in quantity and/or quality of stock that they would not be able to undertake solely, and have it managed and operated by experienced professionals.

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