We divide ownership interest in limited partnership horses into 200 shares, each representing 1/2% ownership. Partners can purchase any number of shares, usually at a price around $499/share, which covers our purchase price for the horse. Partners then share, pro rata, the ongoing maintenance in the horse – trainer's fee, feed, stable, help, routine vet and farrier bills, and the like; they can pay the monthly bills by check or, automatically, by credit card. Partners also pay pro rata for emergency vet work, and the annual insurance for the horse.

Once the horse is racing, with the potential to earn purse money, partners can accrue any earnings against the monthly maintenance, or, if they wish, receive a check. Partners can also request a statement at any time.

Limited partnerships continue until the horse is retired, sold, or claimed. If it is sold or claimed, partners receive their pro rata share of the price which they most often ue to roll into another partnership; of course, a partner can get their net funds as a payout. If a horse performs particularly poorly, Karakorum may, at its option, move partners into another prospect, at a discount.

Limited partners are just that: they have no decision-making power in the partnership. The general partner, Karakorum (or Karakorum Farms), has sole discretion as to the racing career of the horse, and receives purse bonuses, markup, and management fees.

In a general partnership, the partner own a larger percentage of the horse, typically 10% per share. The sales price, usually thousands of dollars per share, covers Karakorum’s purchase price. Partners also pay monthly maintenance, retroactive to Karakorum’s purchase of the horse. This ensures that all partners – including Karakorum, which generally retains 40% of the shares – pay an equal amount of maintenance. As in limited partnerships, earnings are allocated pro rata, as are racing proceeds and proceeds from any sale or other disposition.

As general partnerships have fewer partners, each partner has some input into the racing career of the horse. Karakorum remains the managing partner and has final decision-making authority.