BGP Capital

Gm Equinauts

There are only a few more days left for anyone to register their interest in becoming a member of BGP Capital. Doors close end of next week.

There have been some good questions in regards to the finer details of BGP Capital’s commission from the exit of assets which I have shared below.

I) Please could you provide a worked example of the on-sell of a horse say for a) 40% more than purchase price and b) 120% more than purchase price.

BGP Capital’s fees are simple in structure, with no hidden costs. BGP Capital’s commission is 30% up to 100% return and 50% thereafter. Working example - last week a Shadwell cast-off was sold out of BGP Capital HQ for £140k. Original purchase price was 12k (our most recent success). In this instance, BGP Capital would take 30% of 24k and then 50% of the remaining £115k leaving investors over £74,000 in returns. No commission will be taken if horses aren’t sold for a profit. 

II) Bit light on finer details regarding fees so would be great if you’d confirm the above and any other fees I may not be aware of.

The only other fees are a 2% management fee of total pooled funds, which is already baked into the total package cost (to be paid upfront).

III) Also, are there protections in place that, due to a promote being paid on an individual horse basis that if the wider fund was to lose significant capital that management are not disproportionately rewarded for getting lucky say with one horse while losing on all others? I.e. investors lose money all round while management pushes investors to a further loss by taking a promote.

BGP Capital will take commission on each horse rather than across combined fund. We will know quite early if a horse or horses have pinhook value. If we anticipate some horses to be sold for a loss, they’ll be handicapped for a win and investors will have the opportunity to gamble them.

The pricing structure is transparent and the commission scheme is both in favour of the investor and directly proportionate to the performance of each horse.

The interest in BGP Capital is now at the ‘sweet spot’ where funds can be deployed across multiple assets to avoid a concentration risk. This is exciting.

To all who have registered interest already, you will be contacted late next week in regards to next steps.

To those who haven't, you can still register interest here:

Best,

JT