A key factor to success in this industry is the acquisition of solid pedigree weanlings, yearlings, two-year-olds in training, and proven racing prospects. A true indicator of the health of the thoroughbred industry can be measured by the dollar volume of the yearling market, which achieved records in gross sales and average price in 2006. The weanling and two-year-old market also showed increased in gross sales of +13.9% and +14.8%, respectively.

Another indicator of the health of the thoroughbred industry is the total gross purses available from racing. Purses grew 3.3% in 2006 and exceeded $1.1 billion in the United States. The US Gross Domestic Product for racing, breeding, and related activities alone is over $39 billion, with the total horse industry contributing over $101 billion.

Raintree Thoroughbred Farm has formed a solid foundation for a successful operation and a profitable return on investment. Contacts in the United States and Europe provide a strong source for excellent prospects. By focusing on our objectives, combined with the ability to participate in a number of the diverse segments of the thoroughbred industry (auction sales, import/export, breeding, racing, and partnerships). Raintree Thoroughbred Farm will create a firm basis for profitability.

Risk is minimized by the purchase of equine mortality insurance and sales rejection coverage insurance which provides indemnification for 75% of the purchase price of all thoroughbreds.