Jockey Brian J. Hernandez Junior (R) crosses the finish line ahead of Mistic Dan #3, Sierra Leon #2, to win the 150th position of Kentaki Darby by Jockey Russian Rousi Saikai, rider by Tyler Gaffalian and Forever Young to win the 150th position of Kentaki Darby.
Michael Reeves | Getty images
The 151st Kentaki Derby has been marked on this Saturday. The winning top will earn $ 3.1 million from a purse of $ 5 million divided between the top five finishers.
Bank of AmericaSteven Mason will be on the Finnish line, will look from a box with his high-net-class clients. Located in Nashville, Tennessee, a private banker has specialized in horse riding customers for almost a decade. It naturally came to Mason, who grew up in Kentki and bought a small horse farm for his two daughters when he moved to Nashville.
“Horses are a lifestyle,” Senior Vice President said about his customers. “In some cases, they think them as investment, and some of them, they think they are just an extension of who they are.”
Mason warned that horses, like other passion assets, are unethical investment with uncertain writings.
He said, “I think you have to see it as if there may be a return or no return, but whenever I am following it, I am going to spend a really good time.”
While many of his customers grew up with horses, they have seen that the increasing number of entrepreneurs became the owner of the horse for the first time after the liquidity incident. More hedge fund managers are entering the arena, such as former hedge funds Jack wolfWhich is co-owner, the last horse to win the triple crown.
Mason’s tax-loving customers usually take loans to buy horses rather than liquid their property, which provokes capital gains taxes. However, unlike other special assets such as boats and jets, Bank of America does not allow customers to use horses as collateral.
Mason said, “Banks do not have hunger to breathe, which is a living animal in collateral,” Mason said. “God did something with the horse. Then you left with an uncontrolled loan.”
Customers usually extract a private credit line safely by marketing securities with a floating interest rate. This rate is based on a popular debt benchmark called second overnite finance rate (SOFR), which is 4.35% average in the last 30 days, as well as a spread by the bank.
Steve Mason (right) painted with his son John Michael, wife Amy-Beth and daughter Claire in Iroquois Stepepase in Nashville, Tennessee in 2024.
Courtesy of Steve Mason
For successful race horses owners, stud fees are far more attractive than track win. The stud fees for the top race horses can be at the top of $ 300,000, although most are very low, according to Mason. He said that most are breeds for 30 or 40 mars per season.
Despite being in the game, the high end race is a strong demand for horses Popularity declinesMason said that the demand for year, or young horses is especially strong, which he credits for increasing popularity Racist syndicatesAuction House Keenland’s September yearning cell set a record of $ 428 million last year. According to Keenland, the average selling price per horse was $ 150,548 5.2% year -to -year.
Fasig-Tipton’s annual November sales can achieve seven figures in the finest Thorbreds, auction.
While the race horse can cause less lifetime Sports injuriesThe average lifetime for horses is 25 to 30 years. According to Mason, there is a completely price, costing up to $ 60,000 per year. Customers are afraid to make their children unhappy with expensive burden, Mason recommends funding a trust that provides for horse care.
For mason, working with horse riding is not only a calling card, but also a way to earn customer loyalty.
“When we can stand shoulder to shoulder with a customer and talk about them in our office or in a farm or in a horse area, it really makes that relationship more special and all more close knit,” he said.
