The never ending search for new money – New Zealand on verge of securing fresh investment

Much of Aushorse and New Zealand Thoroughbred Marketing’s charter is to attract new investment into the Australasian industry.

Representations made to countries such as mainland China, Qatar and Saudi Arabia by the two bodies in recent years singing the praises of Australia and New Zealand’s respective racing and breeding industries are often a slow burn.

Recruiting major investors to make long-term commitments into countries they are less familiar with than their own is easier said than done.

And it usually takes longer to come to fruition than most would expect.

For at least six months there has been speculation that New Zealand’s The Oaks Stud, currently owned by Queenslander Dick Karreman, had a buyer.

The deal, as yet, hasn’t been finalised, although it’s understood to be getting closer to reality.

It would be welcome news with the expectation of “new money” flowing into the New Zealand thoroughbred industry.

The likely development comes as murmurs that there could also be further international investment within the New Zealand industry, principally from South Africa.

While NZTM chief executive Andrew Birch would not be drawn specifically on The Oaks Stud or other potential international investors, he suggested that the New Zealand industry presented as a sound proposition.

“Major investors in thoroughbred breeding are rare and highly sought after, but there are several factors aligning in New Zealand’s favour at present,” Birch said. 

“Between our internationally respected bloodstock, improving domestic racing returns, favourable exchange rates and a more investment-friendly regulatory environment, New Zealand presents a compelling proposition for those looking to invest in the thoroughbred industry.”

Kiwi breeders bought 32 mares at last week’s Magic Millions National Broodmare Sale on the Gold Coast, up from 18 the previous year.

Their spend was also up year-on-year, with $3.6 million invested this year compared to $2.728 million in 2025.

Birch indicated that NZTM was “always looking to foster investment into our thoroughbred industry”.

“We have widely been known as an export nation and given the uplift in prize money in New Zealand in recent years, we have seen more foreign entities racing horses locally, while we have continued to see New Zealand used as a world-class and cost-effective stepping stone to racing in other jurisdictions,” he said.

“The New Zealand dollar is at a 13-year low versus the Australian dollar at around 82 cents right now and our dollar is also at historical lows against the US, Chinese and Hong Kong currencies. 

“It is also significantly weaker against the South African rand than it has been in recent years.

“At the same time, reforms to the Overseas Investment Act have streamlined the investment process and improved accessibility for international investors looking to establish or expand their presence in New Zealand.”

Australia has its own international investors – long-termers like Godolphin, Coolmore and Yulong, who can essentially be classified as local thoroughbred entities – who play an important role in the bloodstock ecosystem.

Sheikh Fahad’s Qatar Racing, a shareholder in Widden’s champion stallion Zoustar, for instance, was represented by David Redvers at the Magic Millions sale.

Redvers, in conjunction with Widden, bought into three mares with Widden’s Antony Thompson including $1.1 million Magic Night winner Memo. Redvers also signed alongside Rosemont Stud and trainer Peter Moody to buy the Zoustar half-sister to Written By.

Sheikh Fahad was also a big buyer, largely in partnership with Ciaron Maher, at the earlier Magic Millions and Inglis yearling sales, signing for 11 yearlings at the Gold Coast and two at the Easter sale.

Hong Kong is also a source of investment into the Australasian market, with the likes of So Bloodstock owning up to 20 horses in Australia with trainers including Joe Pride and Patrick Payne, the Kwok family, of “Beauty” fame, having a string of horses in training Down Under to complement their Sha Tin and Conghua stable.

The Kwoks were trackside at Eagle Farm last week as Beauty Swift ran sixth in last week’s Queensland Derby. Then there’s Domeland and its offshoot Mathland with private trainers Nacim Dilmi and Geoff Allendorf in place for King Cheng and his father YP, among many others.

“Australia has one of the most vibrant and competitive thoroughbred industries in the world, and it has long been an attractive prospect for racing and breeding enthusiasts from overseas,” Thoroughbred Breeders Australia and Aushorse chief executive Andrew Hore-Lacy said.

“International investors play an important role in our ecosystem, whether they are buying bloodstock, racing horses with Australian trainers, investing in stud farms or supporting major sales. 

“Their involvement brings capital, confidence and global attention to our industry, while also supporting jobs and economic activity across regional Australia.”

For the best part of a decade Yulong’s Zhang Yuesheng has been the shining light for international investment in the Australasian industry, with the mainland Chinese owner-breeder investing hundreds of millions of dollars in bloodstock and properties.

But as Yulong reaches a point of consolidation, with a broodmare band of more than 600 on the books and stud farms at Nagambie and in the Hunter Valley, the industry is looking for the next wave of mainland Chinese to become involved in the Australasian industry.

It’s a demographic the Hong Kong Jockey Club is also exploring in a bid to expand its ownership base.

Mainland Chinese owner Sanxiong Gao didn’t exactly emerge from nowhere, but being captivated by Hong Kong sprinter Ka Ying Rising – and being trackside for last year’s Everest – certainly helped.

That first-hand experience at Royal Randwick prompted Gao, with the assistance of the Hong Kong Jockey Club, to attend the following month’s New Zealand Bloodstock Ready to Run Sale.

Flanked by Ka Ying Rising’s trainer David Hayes, Gao bought two two-year-olds, by Per Incanto and Satono Aladdin, with the pair put into training with Hayes’ sons Ben, Will and JD at Lindsay Park in Victoria.

“Mr Gao is a new incoming member of the Hong Kong Jockey Club from mainland China. We have quite a focus on developing our ownership base in the mainland,” the Jockey Club’s executive manager of International sale and owners advisory services Danny Rolston told The Straight at Karaka last November.

“The club, in collaboration with New Zealand Bloodstock, has arranged a tour here to the Ready to Run Sale to assist some of our new owners who want a supported visit here to the sale in an effort to buy some nice horses.” 

Per Incanto’s Stoneflight raced at Geelong in April while Satono Aladdin juvenile Stone Phantom jumped out for the first time at Flemington last week.

At Karaka in January, Gao backed it up in tandem with trainer Ciaron Maher, with the pair paying $1.1 million for a second crop colt by Sword Of State.