To people outside the horse business, the word “syndicate” may conjure up images of sinister characters and organized crime. People who invest in horses, however, attach quite a different meaning to the word syndicates. Mention of a syndicate may remind them of Secretariat, Niatross, Aladdinn or Easy Jet, depending upon the particular breed of horse that interests them. They also think of something else: money, big money.
Although one cannot seriously contend that syndicates alone are responsible for the spectacular monetary growth of the horse business, they certainly have facilitated that growth. Syndicates have been and continue to be the principal vehicle for multiple ownership of expensive stallions of the major breeds and have enabled “smaller” investors to own an interest in stallions, which otherwise would be well beyond their means. This additional demand has to some extent helped to establish and maintain the existing price levels for top quality horses.
Rutheford B Campbell, Jr., Stallion Syndicates as Securities, 70 Ky. L.J. 1131 (1982).