WinStar is Strategic Partner in New Microshare Company

Recruiting new owners to Thoroughbred racing is as integral to WinStar Farm's mission as the raising and racing of championship caliber horses. Kenny Troutt's farm near Versailles, Ky., took a major step toward furthering that goal by announcing April 21 it is the strategic partner to a new microshare investment company called Commonwealth, which promises to significantly expand the accessibility of ownership at all levels of Thoroughbred racing, sales, and breeding.

Microshare ownership in Thoroughbreds had its coming out last year when Spendthrift Farm's MyRacehorse gave 5,314 people unprecedented and legitimate bragging rights to owning a piece of Kentucky Derby Presented by Woodford Reserve (G1) winner and Horse of the Year Authentic  .

"Creating different opportunities and different ways of participating is what we all need to be doing as an industry," said Elliott Walden, CEO, president, and racing manager at WinStar. "We developed a program 10 years ago called StableMates and it has been successful in creating new fans and new owners. Our partnership with Commonwealth is another step in the same direction."

Commonwealth, based in Lexington, is the brainchild of co-founders Brian Doxtator and Chase Chamberlin, who grew up together in a rural community near Gull Lake outside Kalamazoo, Mich. After high school, they took dramatically different paths. Doxtator went into technology where he spent 15 years working with start-ups and emerging business models. Chamberlin is a lifelong equestrian who has competed with multiple breeds and in multiple disciplines around the world. He never went into the horse business as a profession because he "didn't want anyone to own my passion" and instead developed a career in digital marketing and as a video strategist.

While doing research in 2018 on "cool companies doing things I think are interesting," Doxtator came across a company called Rally Road, which sold shares in high-end classic cars under the same federal regulatory rules that govern MyRacehorse.

"I thought there was something interesting going on here that is tapping into this passion for investing," Doxtator said. He pored through all the Rally Road documentation and reverse-engineered the business model and then started looking for other applications. One of his first calls was to Chamberlin because they are both horse racing fans, and his childhood friend had the inside knowledge of the horse world.

"I am a casual fan and really don't know how to get into horse racing, but there seemed to be something here. Chase is the person I know best in the horse community, so I bounced this idea off of him," Doxtator said. "People who know me, know I do this a lot. They are used to getting crazy emails from me, 'What do you think about this…' I probably gave Chase the driest email I'd ever sent because it was mostly about SEC regulations and shares. He came back with a list of questions in a long email and I thought, 'Oh wow, I think we struck a chord here.'"

Soon they began to see other ventures exploring the microshare market and decided to dive head first into Commonwealth. Doxtator put together a development team to build a mobile app that he wanted to be the heart of the Commonwealth ownership experience.

"We leaned hard into the technology because we wanted the experience a younger, more mobile-oriented generation expects," said Doxtator. "It is a state-of-the-art, slick experience where things are happening in clicks and swipes in a very natural way. It is a dynamic place where everything pertaining to your horses and social moments can all be shared."

Doxtator and Chamberlin also went looking for a major farm as a partner, of which WinStar became an early target.

"We felt WinStar is the ultimate racing and breeding entity," said Chamberlin. The farm was honored with an Eclipse Award as Outstanding Breeder in 2020 and had been previously recognized as Outstanding Breeder in 2016 and Outstanding Owner in 2010.

"Their tone and style matched ours the most. It just seemed like a natural fit," Chamberlin continued. Commonwealth also has gotten advice from Claiborne Farm president Walker Hancock, who continues to serve on Commonwealth's advisory board.

The Commonwealth concept resonated immediately with Preston Troutt, the 26-year-old son of Kenny Troutt who works at Mount Vernon Investments, the Troutt's family office. When Troutt first heard the pitch about a year and a half ago, he saw the value but the development had not progressed far enough. Troutt and the Commonwealth team continued to trade ideas until August of last year when WinStar began exploring ways to be more directly involved.

"MyRacehorse had some success at that point and was getting ready to have more. There were more than 5,000 owners in Authentic, and we thought this is a space that gives people a reason to get into horse racing," said Troutt. "Commonwealth's technology does a great job of catering to the younger generation that is either looking to get involved or at least willing to give it a try."

Just among his friends, Troutt said they might watch one of the Triple Crown races but then be completely disengaged from the sport for the rest of the year.

"With this concept, instead of betting $50, you can invest that in a horse," he said. "Now you're not watching the races once a year, you're watching a horse race five or six times. That is a 500-600% increase in viewership just from one user. Then they are getting direct updates on their phones about works, what the trainer is looking for, the next race coming up, maybe watch an interview with a jockey. They are starting to learn more and get to see the personality traits of their horses, which all goes toward building that emotional connection to the horse."

WinStar is a minority investor in Commonwealth and as a strategic partner will assist in providing Commonwealth horses for its investments from some of the foals it breeds and provide the expertise of Walden and WinStar general manager David Hanley in finding racing prospects.

"It is a great concept," said Hanley. "Commonwealth is giving young people the experience without having to spend a bunch of money. They can get into a bunch of different horses and learn about the training and racing and feel the excitement. This creates an opportunity that I think is fantastic for horse racing."

When Commonwealth launches, one of its first offerings will be in Peter Pan Stakes (G3) winner Country Grammer , who just missed winning the April 17 Californian Stakes (G2) at Santa Anita Park by a neck. WinStar bought Country Grammer for $110,000 at this year's Keeneland January Horses of All Ages Sale out of the dispersal for the estate of the late Paul Pompa Jr. Commonwealth, which owns 30% of Country Grammer, will be offering 2,277 shares at $50 each in the 4-year-old son of Tonalist  .

"He's such a cool horse that ran great in the Californian," said Walden. "We are really excited about the year ahead."

Other Commonwealth offerings will soon include three 2-year-olds WinStar bought recently at The Gulfstream Sale, Fasig-Tipton's select 2-year-olds in training sale at Gulfstream Park. The offerings include a $650,000 Frosted   colt out of the Unbridled's Song mare Nickel; a $250,000 Maclean's Music   colt out of the Tiznow  daughter Je Suis Tizzy, a half sister to stakes winners Cherokee Artist and Cherokee Girl; and a $230,000 Constitution   colt out the of Tiznow mare Letchworth, who is out of grade 1 winner Harmony Lodge.

Commonwealth's inventory will focus on racehorses in the short term, but the plan is to spread out into other areas, including broodmares and pinhook prospects.

"We'll make these offerings as the business model matures, but anywhere partnerships are is where fractional ownership will head," Chamberlin said. "Horse racing really has something for everybody. We feel the more we open up all sides of horse racing, the better."

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