BGP CAPITAL – the club

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The club (BGP Capital) and website located at https://www.bgpcapital.co.uk is owned by BGP Capital Limited, a British company. The club, website, its owner, affiliates, control persons, directors, officers, employees and agents are hereafter collectively referred to as “we”, “us” or “ours”. You are hereafter referred to as…well, “you” or “investor” and the horses collectively referred to as “assets”, “yearlings/2yo’s” or “asset’s”.
 

Contract

The club and all matters associated with it shall be managed by the company Directors whose decisions shall be final, binding on the club’s Members and not open to query or appeal. If any person considering becoming a Member is not happy with this, they should please not proceed with their application to become a Member.

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The company owns the business and the Intellectual Property. The company derives its income from managing the club and buying and selling bloodstock. The Members are the valued clients of the business and all client information is strictly confidential. The data relating to the company's clients are protected by, and subject to The Data Protection Act 1998. Any attempt to access the client database or to obtain any personal information relating to the Members (including for example names, addresses or other personal information) by any means is prohibited.(Note: it is important that the company protects itself from any possibility of any person or persons taking the syndicate away. It also helps protect clients from being approached by anyone who offers a personal view, claiming expertise in matters relating to the business of training, racing and keeping, a racehorse).

 

Membership

 

Our obligation to members are certain in giving all members access to our community site only. All members are granted access to a password protected community site where members can receive BGP Capital updates. Tier 2 ‘Black type’ and Tier 3 ‘Group 1’ members will have access to the betting Discord. Any commissions (see commission scheme),  social events and prize money will be delivered at the discretion of BGP Capital and we are under no obligation to do so. Membership does not constitute any ownership in BGP Capital assets. This is not a horse racing ownership syndicate.  Members do not own the horses.

 

Refund policy

 

When BGP Capital purchases a horse, a considerable financial risk is taken by the company and it is for that reason we will not offer or provide refunds on club membership.  Under Consumer Contracts law, you have a right to a refund for any reason within 14 days of the contract starting but by agreeing to these terms you hereby waive this right.

 

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BGP Capital pricing structure and features

Handicapper
£250 + VAT (£300) & 2% pm
Access to owner portal
Portion of exit returns relative to stake

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Black type

£550 + VAT (£660) & 2% pm
Access to owner portal & betting Discord
Race day ballot + social events
Portion of exit returns relative to stake

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Group 1

£750 + VAT (£900) & 2% pm
Direct access to BGP
Access to owner’s portal and betting Discord
First come first served race day entry + social events
Share in prize money
Portion of exit returns relative to stake

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How it will work – in detail

Replicating a typical private equity model, BGP Capital will take significant stakes in assets (yearlings) in the hope that the target will evolve into a powerhouse in its field (pun intended) in a three-stage value add process.

The first and most important stage is the targeting and buying. BGP Capital will set out to generate ‘above-market’ returns through a specific investment strategy. This means targeting a certain part of the market, usually defined by price against perceived potential. (At our discretion, BGP Capital will look to invite some members to visit the sales and experience this unique part of racing). In order to comply with Jockey Club rules, the horses remain the property of BGP Capital.

 

The second stage is nurturing and training the yearlings at HQ. BGP Capital will add value to the assets in an unquantifiable manner through time and rearing, until they are ready to be sent into training.

Oversight and management make up the third important function of the value-add process. Among other ‘early’ support work, BGP Capital’s management team will work closely with trainers to help with the strategic race planning, as well as leveraging networks domestically and overseas to identify exits i.e., selling the horses for profit.

BGP Capital’s management compensation will be tied closely but not exclusively to the club’s performance, thus adding accountability and incentive to our efforts in buying, nurturing, and training the young stock. In an ideal world, this will eventually lead to the acquired horse’s valuation increasing substantially in value from the time it was purchased as a yearling, creating a profitable exit strategy for BGP Capital.

As an investor, you must have reliable, capable, and dependable management in place. BGP Capital’s management has a combined experience of over 80 years practice in the racing world. Management will be given a portion of equity and bonus compensation structures that reward us for hitting certain financial targets.

Like a typical Private Equity model, BGP Capital will take a management fee charged on a percentage of total pooled funds. We also take 30% of the sales price of all horse’s if greater than the purchase price and 50% of the sales price of all horse selling for more than twice its purchase price. Once all the horses are sold, the club is wound up and the accounts are reviewed by the auditors. Any surplus of income over expenditure is distributed to you, relative to initial investment. In the
unlikely event of a deficit, the cost will be borne by BGP Capital thereby ensuring that no further calls for funds are ever made

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Disclaimer (investors should read this)

What do we do?

We will buy yearlings to train and race as 2 year olds in the hope of making a profit long term. It’s that simple.

Will we guarantee you profit?

No. Members acknowledges that participation in the club involves activity in a high-risk industry and that capital deployed maybe fully lost.

Will we call you for more cash?

No, not unless we decide to pay to supplement the horse for a big race. Your prices covers all expenses including the purchase and training of the horses up to the end of their two-year-old year. This includes vet bills, entry fees, jockey fees, transport etc.

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How is the potential investor impacted if the assets lose value?

Despite our expertise, we’re dealing with animals as a risk asset, in an unregulated market. Illness, injury and in some cases death must, unfortunately, all be considered when making this investment. Assets might also decrease in value (it’s a market after all), we are not responsible nor can be held accountable for any financial loss.

What will happen when the club membership ends?

Most, if not all, all of the assets held by BGP Capital will be liquidated and subject to wide variations in value and demand and as a result, a profit and loss will be crystalised. If each asset is sold below its purchase price, the investor will likely lose most, if not all their investment. If the assets are sold above their original purchase price, profits will be paid out as commission minus costs and expenses. See the commission scheme below.

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Why is this Disclaimer being provided?

We are providing you with this disclaimer because we want investors to understand the risks involved.

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What we are not.

We are not and do not act in the capacity of any of the following; as such, you should not construe our activities as involving any of the following:

- An independent advisor or consultant;
- Providing investment advice;
- Acting in the capacity of an investment adviser or engaging in activities that would be
deemed to be providing investment advice;
- Broker-dealer activities or acting in the capacity of a registered representative or broker;
- Securities researcher or analyst;
- Financial planner or financial planning;

-Horse racing ownership syndicate

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Commission scheme

 

You will be eligible to participate in the BGP Capital Commission Scheme in force from time to time (the “Commission Scheme”) in accordance with the following:

 

• In order to accrue or earn commission under the Commission Scheme, you must: (i) be a fully paid up member of BGP Capital; (ii) not have served or received notice of termination of member of BGP Capital. 

 

• Payments of commission under the Commission Scheme shall be paid after any deduction which BGP Capital may lawfully make and after once all assets (horses) have been divested). 

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• The commission scheme is non-contractual. BGP Capital reserves the right to vary, change or withdraw the commissions at its absolute discretion at any time without notice.

 

Additional 

BGP Capital provides no assurance or guarantee of profit.  BGP Capital does not guarantee to be free of errors-or computer viruses.  BGP Capital is not responsible for any loss of data, financial loss, interruption in services, damages or loss from the use or inability to access BGP Capital or the reliance on any information on the site. Don't give BGP Capital an email address or information for an account or otherwise that you don't want made public. If you're uncomfortable with us having your information, or you're unwilling to accept that loss of data occurs and there exists a possibility of your information slipping into the general public, email us and we'll happily remove your account. You should have no expectation of privacy. We make no guarantees with respect to privacy. We disclaim all liability regarding the making of your information public.

All of the content on BGP Capital is provided without assurance or warranty of any kind. By using the club members platform and Discord channel, users are taking any and all risks associated with chatting into their own hands; the world is full of mental people and expecting us to monitor them is absurd. (It's an opt-in service, if you don't like it, don’t join.)
 

We reserve the right to modify the terms of this disclosure without notice.