http://www.hibiscusstables.com/
Breed: Thoroughbred
Locations: California, New York
Average Review (5)
In Operation Since:
2004
Managing partner(s):
Mike Oliveto
Doris Ann Hayes
Al Schwab
Additional Key players:
Hibiscus Stables partners with high-profile trainers such as Steve Klesaris, Linda Rice, and Ron Ellis. Unlike other partnerships, Hibiscus trainers buy and own 10% of every horse that they train for the stable. Each partner has the comfort of knowing that the trainers are partners right along with them.
What kinds of horses do you target, for what kinds of races? What are the main goals of your partnerships?
Hibiscus Stables’ mission statement is to build a stable of highly competitive Thoroughbreds racing on major circuits and to ultimately have horses competing at the highest levels of racing. If we were forced to boil it down to its most simple element we’d have to say that our long-term goal is to have the next Triple Crown winner. Is that ambitious? Absolutely. Will it take hard work? Certainly. Are we up to the challenge? Well … as Horse of the Year trainer Rick Dutrow recently said, “We’re all in, baby”.
Our “other” mission statement is to make sure we have a blast doing it. Nothing is worth doing if it’s not going to be fun. We’re offering horse racing partnerships in our quality Thoroughbreds to everyone who shares our passion for Thoroughbred racing and is up for the excitement of their lives.
How is the managing partner compensated?
The Managing Partner is compensated by receiving 10% of all purses plus $500 per horse per quarter.
Who authorizes the various expenditures and how are the partners notified and billed?
All expenditures are authorized by the Managing Partner. Complete details are available to all partners. There is 100% transparency. Unlike other partnerships, Hibiscus trainers buy and own 10% of every horse that they train for the stable. In addition, as the CEO of Hibiscus Stables, Mike Oliveto personally buys and owns 10% off all horses run by the stable. Finally, Hibiscus Stables itself buys and owns 5% of all horses run by the stable. As such, only 75% of all horses are syndicated to partners. The significance is that the trainer and management are partners right along with the clients. As such, the Managing Partner and the trainers have a direct vested interest in keeping expenses low and purse earnings high. All ships sail in the same direction. This is a powerful point of differentiation from other partnerships.
The partners are invoiced quarterly for their share of expenses.
When income is recognized from purse money or sales, does this income flow directly to investors or is it maintained in an account to cover future expenses? At what point does the partnership settle up (monthly, quarterly or annually)? Is each partner provided a statement reflecting cash receipts and disbursements? How often?
All purse earnings are maintained in a separate bank account. There is a separate bank account for each horse so as to make bookkeeping very simple and transparent. When a purse is earned it is deposited into that particular horse’s bank account. Then, enough is held back to cover projected expenses for the remainder of the quarter. The excess, if any, is distributed to the partners.
Are racing and sales decisions made solely at the discretion of the managing partner?
All racing and sales decisions are solely made by the Managing Partner. That said, in the vast majority of the cases, the racing decisions are deferred to the trainer. The trainer has far more experience and expertise than anyone else and is therefore most qualified to make racing and training decisions. Occasionally, during extraordinary circumstances, decisions are put to a partner vote.
How do you keep your partners updated about their horses (Email, phone, website, online message board, etc.) and how often are they updated?
Hibiscus Stables maintains a website that is updated every few days with the latest news about each horse. In addition, partners are updated ongoing by email with specific information pertaining to their specific horse, usually in more detail than what is posted on the website. Partners are updated in a timely fashion, typically once or twice per week via email but the frequency really hinges on whether there is something newsworthy to report.
What sort of services and perks do you offer your partners? Stable Visits? Farm Visits? Help handling the licensing? Anything special you want to mention?
Hibiscus Stables offers the handling of all licensing for partners. They also offer stable visits and meetings with trainers, etc. One differentiator from other partnerships is that Hibiscus Stables is a very socially orientated group. On days when horses are racing they always reserve a table in the clubhouse restaurant and all partners are invited to join and enjoy a day at the racetrack. Many partners have become friends with the Hibiscus principals and also have become friends with each other. More than just buying a piece of a horse, it’s very similar to joining a team.
REVIEWS
If you would like to leave a review, please click here. Mike Metzger, 1/29/09
I have only been involved with this partnership for a short while now, but i can say that the experiece thus far has been nothing short of excellent. Michael puts together timely and comprehensive e-mails on my partnership. I feel that i am part of the Hibiscus family already.
I was very new to the partnership game. This is my first time doing it. Prior to making a decision, i had contacted about 6 different partnership groups. Michael always answers my e-mails in a simple manner that allows a greenhorn like myself to feel comfortable.
Thus far, i can see no reason for an interested person to not work with the folk at Hibiscus Stables. In this short while they have got me into something that, if nothing else, makes me happy. Go Porty!
Bill S, 1/12/09
Have only been a member since September of 2008 but I believe we made the right decision in selecting Hibiscus. This being our first partnership, we were not sure what to expect,but Michael Oliveto has proven to be responsive to all our questions and concerns. Ongoing communication has been great. The size of the partnership and number of horses seems to be right. Not too big and not too small.
Very fortunate to have Ron Ellis as the trainer in Southern California. Has been very generous with his time at workouts.
William J. Smith, Esq. 1/11/09
I have been involved with Hibiscus Stables for approximately 3 years and I can tell you, without reservation, that you will not find a better, more knowledgeble group than this Group. Not only do they employ skilled research and planning in selecting the stock that they eventually pursue on behalf of their partners at various sales, but they treat all partners with dignity and respect regardless of the level of your investment. This is extremely rare in horse racing partnerships. In addition, they have managed to create a low-pressure, family-like atmosphere amongst the various partners. They are also very responsive to any questions put to them, and the managing member goes out of his way to make sure that your experiences are positive. About the only thing that they need to improve upon is the 28% win percentage......which in and of itself is statistically better than most partnerships perform.
Steve Linden, 1/11/09
This partnership stable is comprised of the greatest group of people. They are alot of fun to be with and this has been a tremendous expierence for me. I have been involved for 7 months and I'm sorry I didn't get involved sooner. The principles of the stable keep us informed of the workouts and future plans of your horse. If you are looking to be a partner and more importantly looking for a wonderful experience then you need look no further.
RLE, 1/10/09
I've been involved with several groups over the years in New York, Illinois, and California and Hibiscus is by far my best experience. They have provided current updates on all 3 of the partnerships I have joined including financial, which was a particular problem in the California partnership. Great people run this deal and they even ask for input, which is unusual--you usually can't get output much less be asked for input. I have been involved in racing partnerships for over 10 years and have enjoyed this group(Hibiscus) by far the most. I was in three different horses--all have been winners each with normal horse problems---and all have quality care and the best of trainers.
