Limited Partnership

A growing number of people, especially those with limited amounts to invest, or who fear losing more than what they have budgeted, have invested in limited partnerships. It’s a common investment form: In a limited partnership you put up a fixed amount towards the management of a horse’s racing career. A “general” or “managing” partner makes all the decisions about acquiring a horse, including selecting a trainer, and making stakes payments. You will share proportionately in the purses won, when they exceed expenses, and in a worst-case scenario will not lose more than what you have invested. Such partnerships are widely advertised in trade publications and online.