The Little Red Feather offering is now closed and is no longer accepting investments.

Little Red Feather

Ownership in a thoroughbred racehorse!

Regulation Crowdfunding
Woodland Hills, CA
Sports
Accepting International Investment
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Last year, the Little Red Feather Racing Club created the first ever Racing Partnership through crowdfunding equity under the new Title III laws.  AND WE ARE BACK FOR ANOTHER YEAR of exciting thoroughbred racing on the industry's biggest stages. With those funds, we bought stakes horses and won and placed in stakes races, all while growing our team of owners to over 400 people. Our partners who joined us on the last round got a behind the scenes experience into the world of thoroughbred ownership, including saddling the horses in the Paddock, and of course coming into the Winner’s Circle. 


The LRF Thoroughbred Fund II (“Fund”) provides the opportunity for anyone to pursue racehorse ownership! The Fund will be managed by one of America’s largest thoroughbred racing clubs – Little Red Feather Racing (“LRF”). LRF burst onto the national scene in 2004 when its horse Singletary captured the $1,500,000 Breeders’ Cup Mile. In 15 years, LRF horses have won 223 races from 1,253 starts (18%) and grossed $13,571,540 in purses (through August 30 30, 2017).


Recently, LRF has enjoyed the best 18 months in its history with 43 wins from 192 starts and over $3,000,000 in gross purses. LRF currently manages stakes winners Midnight Storm, Chati’s on Top, Bellamentary, Sheer Pleasure, and Midnight Miley.


LRF will manage the Fund and use the final raise to buy up to six (6) thoroughbred racehorses with the intent of racing at Santa Anita Park, Del Mar and around the U.S.A. Each investor will own a pro-rata percentage of the Fund.  

Here’s an Example:

If the Fund raises $200,000:

LRF will use the proceeds to purchase up to three racehorses (and more if the final raise is higher).  LRF will also set aside a suitable reserve to pay expenses and operational costs. LRF will purchase the racehorses through traditional industry means. For example, the horses will be purchased:

  • At public auction

  • Via a claiming race; or 

  • Through a private purchase.

With 15 years experience, LRF has the industry networking ability to purchase almost any racehorse that is for sale. 

Once purchased, the horses will be trained by one of LRF’s trainers and prepare for its first race for the Fund. Investors will be kept intimately abreast of the racing careers of the Fund horses. The hallmark of LRF is its ability to communicate the horse’s journey with its investors. This “inside the locker room” communication provides a wealth of knowledge to both people new to ownership and those that have owned before.

LRF will also provide an accounting summary of all activity and, if applicable, make a distribution of available proceeds to the investors.

The Fund initially plans to dissolve by December 31, 2018.  However, if the Fund is financially viable, LRF, at its election, may continue the fund into 2019 and beyond.



Owning a thoroughbred in the “Sport of Kings” is like an admission to an exclusive club. Besides the pro-rata equity in the Fund, we hope (but not guaranteed) to provide investors will the following perks:


Level 1: The LRF Partner Package

$10,000+


This is similar to the traditional LRF partner who receives an “all-access” pass into the world of thoroughbred horse racing. 

  • Equity in the fund equal to your investment divided by total raise. 
  • Possible opportunity to apply for a California Owner’s License. 
  • Visit Fund Horses at the barn. • Invitation to watch morning workouts. 
  • Box Seats to all Fund races. 
  • Part of Democratic Process of Naming the Horse. 
  • Join other partners in the Paddock and Winners’ Circle (we will mail you the photo!). 
  • Full LRF Concierge services (eg. access to purchase 2018 Kentucky Derby tickets).
  • Participate in a monthly conference call to discuss the Fund’s horses. 
  • Access to box seats for most races. 
  • Detailed emails regarding each horse’s journey, including notification of entries and results. 
  • Opportunity to purchase winner circle photos of your horses directly from the racetrack.
  • Invite to Meet Your Horse’s Day at Santa Anita/Photo with your horses.
  • Access to purchase Fund apparel.
  • Behind the scenes welcome tour at Santa Anita Park (eg visiting starting gate at race time; silks room; watch track announcer call a race).
  • Santa Anita Park Wagering ambassador assigned to act as new owner liaison.
  • Priority access for clubhouse seating / reservations / food beverage specials at Santa Anita Park.

__


Level 2: The Crowdfunding Package

$500 - $9,999


For the casual fan who wants an inside the locker room look at the world of horse racing:

  • Equity in the fund equal to your investment divided by total raise. 
  • Detailed emails regarding each horse’s journey, including notification of entries and results. 
  • Opportunity to purchase winner circle photos of your horses directly from the racetrack. 
  • Invite to Meet Your Horse’s Day at Santa Anita/Photo with your horses. 
  • Access to purchase Fund apparel.
  • Behind the scenes welcome tour at Santa Anita Park (eg visiting starting gate at race time; silks room; watch track announcer call a race).
  • Santa Anita Park Wagering ambassador assigned to act as new owner liaison.
  • Priority access for clubhouse seating / reservations / food beverage specials at Santa Anita Park.

*ALL PERKS OCCUR AFTER THE OFFERING IS COMPLETED

The gross proceeds of the Offering to the Company will be $00,000 if the Minimum Offering Amount is raised and $1,000,000 is the Maximum Offering Amount is raised. The net proceeds of the Offering, after deduction of expenses of the Offering, including but not limited to the intermediary’s fees, escrow fees, legal fees, accounting fees and management fees will be used by the Company as working capital to purchase, and maintain thoroughbred racehorses for racing at Santa Anita Park, Del Mar and other top racetracks.  The following table lists the estimated use of proceeds of the Offering if the Minimum Offering Amount and the Maximum Offering Amount are raised.



The estimated use of proceeds set forth below illustrate the present expectation of the Company. LRF Thoroughbred Fund, LLC will have discretion to alter the use of proceeds as set forth below as Company determines how to best accomplish its objectives.


  • Established in 2002. 

  • California’s largest Racing Club, with over 450 active partners. 

  • Over 50% of LRF syndicates are made up of previous partners. 

  • Captured the GI Breeders’ Cup Mile with Singletary in 2004. 

  • Sold GI winner Egg Drop for $1,900,000 at 2014 Keeneland November sale. 

  • LRF Horses have finished in the money in 38 Stakes races including wins in the: Breeders’ Cup Mile (G1); Matriarch (G1); Shoemaker Mile (G1); Oak Tree Mile (G2); Arcadia Handicap (G2); Yellow Ribbon (G2); Goldikova (G2); La Jolla Handicap (G2); Honeymoon (G2); Senorita (G3); SF Breeders’ Cup Mile (G3); Irish O’Brien; Solana Beach; Thunder Road; Academy Road; Mademoiselle; Dream of Summer, and the Time to Leave Stakes. 


Offering Size: Minimum $200,000; Maximum $1,000,000

Manager: Little Red Feather Racing Management

Min Investment: $500

Subscriptions Closed: 90 days from launch

Fees: 10% initial raise; 10% gross purses or revenue received; 10% subsequent asset sales fee.

Term: Manager will wind-up and liquidate the Fund as soon as practical, but preferably by the end of 2018.

Targeted Return: $0 - $1,000

Reports Annual: K-1

Main Rules: Once an asset is sold or purse monies are earned, funds will be distributed to Fund partners and/or used to acquire additional horses. On or around December 1, 2018, Manager will determine which horses will be sold or kept in racing.



Are there any other management fees or additional compensation paid to the manager?

LRF Thoroughbred Fund, LLC will pay the manager LRF’s standard 10%/ 10%/ 10% fee:

  • 10% of the initial raise

  • 10% of all gross purses earned by the racehorses

  • 10% “off the top” of the sale of any racehorse.



How much does it cost the investor per month in expenses? 

Nothing. 

LRF Thoroughbred Fund, LLC will build in a suitable reserve for each racehorse to pay training and operational costs for a dedicated period.  In the event the racehorses do not earn enough to maintain future expenses, the manager has the authority to raise funds by issuing new shares (and diluting current members) to pay further expenses and operational costs. A typical horse costs $50,000 per year in expenses.



Can I make money?

Of course.  

Seriously? 

This is a high risk high reward investment. LRF sold a horse at auction for $1,900,000 that originally cost its partners $95,000.  LRF has also purchased a horse that unfortunately never ran.  With over 150 horses managed the only honest thing we can tell you is your investment will probably fall in between those two scenarios… and you may have the time of your life regardless of the ultimate financial result.


How does the Fund Earn Revenue? 

Two ways.  

  1. Earning purse money by finishing in the top five of a race*; or 

  2. Being sold (hopefully as a stallion or broodmare).  

All purses will be deposited into the Fund bank account and used to pay Fund expenses.

* The breakdown of a purse can be different for each race (and placing in the race). Typically, for a horse that wins a race, the owner will net 48% from the purse. For example, if your horse wins a $100,000 race, the net proceeds to the owner is $48,000.


What race tracks will you run at?

LRF Thoroughbred Fund, LLC horses will likely initially only race in California at Santa Anita Park or Del Mar. Notwithstanding, your horses may run in Kentucky, New York, Florida and other circuits.



How often and what kind of information will I receive about my racehorse? 

As mentioned earlier, if you are kept in the dark about what is going on with your horse, how can you enjoy the journey? 

Communication is key to a successful ownership experience.

LRF Thoroughbred Club, LLC will email (as often as daily or weekly) pertinent information about the Fund horses and partnership.   The hallmark of LRF is its ability to communicate the events of each horse’s career with its partners.


What if my Horse Gets Hurt? 

Each horse will carry standard equine mortality insurance. Most, if not all, injuries in thoroughbred horse racing that occur do not result in death or cost the owner an amount over $5,000 in added veterinarian expenses. Career ending injuries do happen. However, in most instances the injury only prevents the horse from competing as a thoroughbred racehorse. Many horses go on to second careers as a broodmare or hunter/jumper etc. The manager has extensive experience trying to palce retired horses where they can maintain secondary careers. 


Will I Receive Financial Statements?  

Of course.  The Fund will provide regulatory accounting statements as well as informal income/expense reports showing detailed transactions the Fund.  


Offering Summary

Maximum 1,000 membership units ($500,000)

Minimum 200 membership units ($100,000)


Company
LRF Thoroughbred Fund II, LLC 
 

Corporate Address
5950 Canoga Blvd., Suite 510, Woodland Hills, CA 91367
 

Description of Business
LRF Thoroughbred Fund II, LLC provides investors with the opportunity to own a thoroughbred racehorse inside a partnership managed by one of America’s largest thoroughbred syndicates – Little Red Feather Racing.
 

Type of Security Offered
Membership Units
 
Purchase Price of Security Offered
$500
 

Minimum Investment Amount (per investor)
$500











Besides the pro-rata equity in the Fund, we hope (but not guaranteed) to provide investors will the following perks:

Level 1: The LRF Partner Package

$10,000+

This is similar to the traditional LRF partner who receives an “all-access” pass into the world of thoroughbred horse racing. 

  • Equity in the fund equal to your investment divided by total raise. 
  • Possible opportunity to apply for a California Owner’s License. 
  • Visit Fund Horses at the barn. • Invitation to watch morning workouts. 
  • Box Seats to all Fund races. 
  • Part of Democratic Process of Naming the Horse. 
  • Join other partners in the Paddock and Winners’ Circle (we will mail you the photo!). 
  • Full LRF Concierge services (eg. access to purchase 2018 Kentucky Derby tickets).
  • Participate in a monthly conference call to discuss the Fund’s horses. 
  • Access to box seats for most races. 
  • Detailed emails regarding each horse’s journey, including notification of entries and results. 
  • Opportunity to purchase winner circle photos of your horses directly from the racetrack.
  • Invite to Meet Your Horse’s Day at Santa Anita/Photo with your horses.
  • Access to purchase Fund apparel.
  • Behind the scenes welcome tour at Santa Anita Park (eg visiting starting gate at race time; silks room; watch track announcer call a race).
  • Santa Anita Park Wagering ambassador assigned to act as new owner liaison.
  • Priority access for clubhouse seating / reservations / food beverage specials at Santa Anita Park.

Level 2: The Crowdfunding Package

$500 - $9,999

For the casual fan who wants an inside the locker room look at the world of horse racing:

  • Equity in the fund equal to your investment divided by total raise. 
  • Detailed emails regarding each horse’s journey, including notification of entries and results. 
  • Opportunity to purchase winner circle photos of your horses directly from the racetrack. 
  • Invite to Meet Your Horse’s Day at Santa Anita/Photo with your horses. 
  • Access to purchase Fund apparel.
  • Behind the scenes welcome tour at Santa Anita Park (eg visiting starting gate at race time; silks room; watch track announcer call a race).
  • Santa Anita Park Wagering ambassador assigned to act as new owner liaison.
  • Priority access for clubhouse seating / reservations / food beverage specials at Santa Anita Park.

*ALL PERKS OCCUR AFTER THE OFFERING IS COMPLETED

Irregular Use of Proceeds

The estimated use of proceeds set forth in the Offering Details present expectation of the Company. The Company’s use of proceeds may differ materially from the foregoing as a result of changing conditions and as deemed appropriate in the sole and absolute discretion of management. Therefore, the Company and its management reserve broad discretion in the use of proceeds and the right to alter the use of proceeds of this Offering, without notice, in the best interest of the Company.

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Risks

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.


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