Cover image courtesy of Peter Rubery (Race Images)

Leica Lucy on target for NZ Oaks after dominant Desert Gold win

In a replica result to the G3 Eulogy Stakes, Leica Lucy (NZ) (Derryn) once again proved too smart for her rivals, ducking and diving into clear room before exploding away for a dominant win in Saturday’s G3 Desert Gold S. at Trentham on Saturday.

The 3-year-old filly was heavily backed into long odds-on favourite and the race panned out as expected, with Leica Lucy landing in a perfect position, one-out, one back before racing clear to defeat Eulogy runner-up Connello (NZ) (Time Test {GB}) by a comfortable 1.3l. However, trainer Robbie Patterson wasn’t so confident pre-race after seeing her antics behind the gates.

“I was really concerned today, she was above herself at the start,” Patterson said. “She had a week off after her last run, and I hadn’t done a lot with her because I know how long the season is.

“I was watching her get held up and when she got out, she went bang, which is a sign of a good horse.”

The New Plymouth trainer is now eyeing the $1 million G1 New Zealand Oaks for the daughter of Derryn before a potential trip across the Tasman, and he is bullish he has the horse to do it.

"I’ve had some good horses but I think this is the best one I’ve had,” he said. “I want to win an Oaks again and I think I’ve got the right horse for it.

“I’ve won most of the good races here, and (I've) won the Oaks before with Kevin Gray with Legs, who was a great horse, but I actually think this horse is better than Legs - and that’s a big statement because she was a good horse.”

Jockey Craig Grylls was also unsure of how the filly would perform pre-race but was excited by the performance.

“First of all, before the run she was really worked up today,” Grylls said. “The other day she was a bit of a lamb so I was a bit worried, but as soon as she came out she dropped the bit and relaxed beautifully.

“They really bunched up turning in and there wasn’t a lot of options, but good horses get you out of trouble. The gap opened up on the inside and she has done the rest.

“When Robbie legged me up, he said, 'I kept her a bit fresh today, there’s a lot of water to go under the bridge'. She’s going to tighten up really well but she’s exciting.”

The Desert Gold Stakes represented the seventh event in the prestigious New Zealand Bloodstock Filly Of The Year series, currently led by Alabama Lass (Alabama Express) with 21 points. Leica Lucy has climbed to third place with 12 points, with four races remaining, including the New Zealand Oaks on March 22, which will be the series finale.

Bred and raced by the Crofskeys from their late mare Dynamite Lucy (NZ) (Sir Percy {GB}), Leica Lucy comes from an extended family that includes dual Group 1 winner Elevenses (NZ) (Star Way {GB}) and Group 3 winner Just Aqua (NZ) (Justice Prevails). Leica Lucy has now won three of her four races, bringing her total earnings to nearly $195,000.

Wolfgang breaks through in G3 Wellington Cup

Wolfgang (NZ) (Puccini {NZ}) showed a great turn of foot to overpower his opposition and secure his first stakes win in the G3 Wellington Cup at Trentham on Saturday. The time-honoured feature was the 6-year-old’s 13th appearance in stakes grade across Australia and New Zealand, having shown promise right from the outset in his juvenile year, including placing in the Listed Wellesley S. and the G3 Taranaki 2YO Classic.

Recently, Wolfgang had produced sub-par performances when unplaced in the G3 Counties Cup and this month’s G3 Queen Elizabeth II Cup at Ellerslie, however carried on towards Trentham for Saturday’s career-defining win.

Joe Doyle rode a patient race, allowing Wolfgang to settle in fourth-last position, although the pace was just moderate. As they approached the back straight the tempo began to increase, however, his task looked increasingly difficult as he still spotted the lead at least 10l.

As they reached the home turn, Doyle pulled Wolfgang to the outside, giving him a clear air to make his move. With just a furlong to go, Wolfgang stormed ahead, taking the lead and pulling clear to win by a commanding 1.5l.

It was a win a long time coming for trainers Peter & Shaun McKay.

“This is unreal, I had a little tear there,” Shaun McKay said. “I was never able to ride a 3200-metre winner in my career, but it’s special to be lucky enough to train one today with Dad. Mum and Dad had the stallion too and had some great success with him, so that just makes it even better.

“He (Wolfgang) just showed today that he’s a really tough horse. We tried to get a Group win with him as a 2-year-old and kept going close with placings. We had to be patient, and now he just keeps getting better and better as a 6-year-old. I think he’ll be even better in six months’ time.”

The win has McKay dreaming of the first Tuesday in November.

“Hopefully we can get him back to Australia next season and pick up a good win there,” he said. “You never know how a horse is going to go over the 3200 metres until you try, but the way he really flew home over that distance today gives us a bit of confidence. It would be amazing to get him to the (G1) Melbourne Cup.”

Wolfgang was bred at Mapperley Stud, which offered him at the New Zealand Bloodstock National Yearling Sale in 2020 where he failed to meet the NZ$50,000 reserve. Simms Davison, the principal of Mapperley, kept him to race with Kim and Peter McKay, who had previously won the G1 New Zealand Derby and G1 Thorndon Mile with Wolfgang’s sire, Puccini (NZ).

Wolfgang is a son of dual winner Navy Beach (NZ) (Darci Brahma {NZ}), half-sister to G2 Matamata Breeders' S. winner Te Akau Coup (NZ) (Thorn Park) and closely related to Mehzebeen (NZ) (Almanzor {FR}), winner of the G3 New Zealand Cup this past November. The gelding has now recorded seven wins from 42 starts and earned just over $550,000 in prizemoney.

J-Mac back in action as Osipenko takes January Cup

James McDonald returned to Sydney racing on Friday night at Canterbury with a win at his first ride back and continued in that vein at Rosehill on Saturday, riding his fourth winner for the meeting on the Chris Waller-trained Osipenko (NZ) (Pierro) in the Listed January Cup.

After being nailed on the line by Tavi Time (NZ) (Tavistock {NZ}) in the G3 Summer Cup at Randwick last start, James McDonald ensured there was no such issue this time, giving the gelding a perfect run in transit and allowing the 5-year-old to let down powerfully to secure a 1.23l win over Converge (Frankel {GB}), with 2.88l back to the favourite Saltcoats (NZ) (Ardrossan) in third.

“To be fair to him (Osipenko), he almost should have won a Caulfield Guineas and when you are talking in that kind of grade, and you come into a 2000-metre race going into an Autumn carnival, you’d think he’d have his hoof on the till,” McDonald said.

“He was well placed today, he had lovely run, a good barrier and he did the rest. He was really comfortable throughout, he relaxed well. He felt excellent to me and I wouldn’t be surprised if he nails a couple together.”

“He (McDonald) is riding probably no better than he normally does, he is just a very good rider,” said Charlie Duckworth, Waller's assistant trainer. Three of McDonald's Rosehill wins were for the Waller stable, including the exciting 2-year-old Wodeton (Wootton Bassett {GB}). “He sums up races beautifully. We’re going to miss him next weekend.”

The victory marked McDonald’s 50th win for the season and Osipenko’s fourth career win, his third at stakes level. The son of Pierro has now earned almost $1.3 million in 26 starts. McDonald will now fly to Hong Kong where he has a packed book at Sha Tin on Sunday, headlined by Voyage Bubble (Deep Field) in the G1 Stewards' Cup.

Osipenko is the best performed of three foals to race from stakes-placed American mare Raskova (USA) (Henrythenavigator {USA}) and hails from the extended family of champion Shamardal (USA). A full brother to Osipenko was born in August last year, before Raskova visited Coolmore's hot young sire, Home Affairs.

Gallery: Images courtesy of Georgia Young Photography

Garnacho on the up after Flemington win

The Emma-Lee & David Browne-trained Garnacho (NZ) (Ace High) labelled himself as a horse on the rise after a determined victory in field of progressive 3-year-olds in the $150,000 3YO H. at Flemington on Saturday.

The son of Ace High over-raced early, when attacked for the lead, before settling in a nice position behind the speed under Damien Lane, one off the fence. Into the straight, the race developed into a two-horse war as Zorro’s Flight (Toronado {Ire}), who was aiming for three wins in a row, and Garnacho went head and head all the way to the line. Ultimately, it was Garnacho who came out on top by the barest of margins.

According to Lane, the most exciting aspect of Garnacho's success was that he remains a work in progress.

“If he (Garnacho) can relax, as he did earlier in his preparation, he has a good turn of foot. That was a tough win as Tom Prebble’s mount (Zorro's Flight) fought hard as well,” Lane said.

David Browne was impressed at the fight Garnacho showed, given his manners early.

“I probably thought he had done enough early as he pulled hard enough and didn’t settle as you’d like in the first 400 metres, and I thought it might have beaten him, but in the end, he was incredibly tough,” Browne said. “He’s come a long way in the last three or four months. He’s tidied up his attitude and he’s now wanting to do things correctly.”

Emma-Lee & David Browne also trained 2024 G1 Victoria Derby runner-up Scary (NZ) (Shocking) and Browne feels Garnacho is a similar mould.

“He needs to be a bit more tidy with his racing manners. He’s improving as he goes along and once he gets that under control, he’ll be a smart horse,” Browne said.

Browne indicated they won’t make any immediate plans with the gelding but suggested they will step him up in distance at his next start.

Gallery: Images courtesy of Racing Photos

Garnacho (NZ) is the fourth winner from three-time winner Aplomb (NZ) (One Cool Cat {USA}), making him a half-brother to city-winning mare Monfelicity (NZ) (Vadamos {Fr}). He also hails from the family of G1 Victoria Derby runner-up Praecido (NZ) (One Cool Cat {USA}) and G1 Thorndon Mile winner Happiness (NZ) (Bluebird {USA}).

Ballon d’Or turns tables on Komocean

Saturday's $65,000 3-year-old sprint at Trentham generated a lot of excitement, largely because of the undefeated Komocean (NZ) (Ocean Park {NZ}), who had made a splash by winning her first two starts, including a 2l victory against Ballon d’Or (NZ) (US Navy Flag {USA}) over the course and distance last start. But the rematch on Saturday had a different result.

Ballon d’Or jumped quickly under Rory Hutchings and swiftly found a good trailing position on the rail behind Kereti (Darci Brahma {NZ}) and Stone The Crows (NZ) (Charm Spirit ({Ire}), while Komocean bungled the start and found herself a conspicuous last after 100 metres.

Ballon d’Or always looked in control from that point onwards, sliding up outside Kereti early in the straight before drawing clear when asked for more of an effort by Hutchings to win by 0.8l, while Komocean failed to come into the race after looming at the top of the straight, finishing a disappointing fifth.

“They don’t come much easier than that,” said Hutchings. “Ballon d’Or has been very consistent and deserved to get a good win down here today.

“I felt we were always in control of the race. Coming on to the course proper, I knew that he was ready to let go. He just doesn’t like to be in front for too long, so I had to time it right. I left it as late as I could before going for the whip, and there was an instant response when I did.”

Co-trainer Shaun McKay was pleased, although the race didn’t pan out as he expected.

“That was a good win today, although it didn’t exactly go to plan,” Shaun McKay said. “I told Rory before the race that we might hopefully end up just behind the favourite, but we ended up flying (out) the gates while she (Komocean) missed it.

“He’s slowly learning and I think he’ll get better and better. I’m not sure where he’ll get to distance-wise. We thought he might be a mile plus type of horse, but he’s shown good ability down the chute today. Maybe we’ll keep him to 1200 to 1400 metres. But he’s got another win on the board now and is progressing well.”

Ballon d’Or was passed in for NZ$40,000 when offered by Elsdon Park at the 2023 New Zealand Bloodstock National Yearling Sale. The 3-year-old now has two wins and five minor placings from 10 starts, for a little over NZ$75,000 in prizemoney. He is the fifth winner from 2500-metre winner Ireland's Teardrop (Ire) (Fastnet Rock), making him a half-brother G3 Taranaki 2YO Classic-placed Last Sight (NZ) (Showcasing {GB}). Ireland's Teardrop is a half-sister to G2 Prix du Conseil de Paris winner Traffic Jam (Ire) (Duke Of Marmalade {Ire}), the dam of Yulong-owned G1 Longchamp Prix de l'Opéra winner Place Du Carrousel (Ire) (Lope De Vega {Ire}).

Shohisha on stakes path after Rosehill romp

David Payne was glowing in his assessment of Supido filly Shohisha following the filly’s dominant performance in the $120,000 Midway H. at Rosehill on Saturday.

After finishing runner-up to Dance to The Boom (Exceedance) in the Listed Gosford Guineas on resumption, Shohisha was sent out a deserving favourite second-up and relished the drop in grade, finishing all over the top of her older rivals under Kerrin McEvoy to record an emphatic 1.7l victory.

It was a victory the signalled to Payne that she is on the cusp on a stakes win.

“She is an above average filly and has showed me that from day one and she’s got a bright future,” said Payne.

“The track beat her at Gosford - if it was a big track, she wins. She might have one more run in a Group race and then I’ll tip her out again as she still needs to furnish.”

Gallery: Images courtesy of Georgia Young Photography

Shohisha was retained to race by her breeder Geoff Evers in partnership and is the first winner from G3 Epona S. winner Consommateur (NZ) (Roc de Cambes {NZ}). It’s also the family of Group 1 winners Magic of Sydney (USA) and Daney Boy (Danehill {USA}). Consommateur has produced a yearling full sister to Shohisha after missing to Supido in 2023 and was covered by him again last spring.

Cover image courtesy of Georgia Young Photography

Blue chip Wodeton lives up to hype with dominant Rosehill debut

The debut of $1.6 million yearling Wodeton (Wootton Bassett {GB}) has been greatly anticipated, and the blue chip colt delivered on the promise of his price tag with an astounding debut victory at Rosehill Gardens on Saturday. The Chris Waller-trained colt was patiently ridden by James McDonald before unleashing a devastating turn of foot in the home straight, flying home by 3.89l over The Magic Man (Showtime). Prior to the kick, Wodeton sat on the second line in the betting for the G1 Golden Slipper S., and his performance may just bump him into the top spot.

Waller’s assistant trainer Charlie Duckworth was on course for the win, and described how eager the stable was to make use of McDonald before the jockey jets off for stints in Hong Kong and Dubai.

“If the track was in the heavy range, we might have waited a week, but James (McDonald) won’t be here (then),” Duckworth said. “We wanted to have James on, and we are fortunate to be racing on a soft deck today.

“He was the most highly talked about colt when we were up at the Magic Millions (last week), and he had only trialled and yet everyone was asking about him. To generate that much hype off of a trial when you are well held and didn’t even win...but obviously people knew what they were looking at and he’s pretty exciting.

“Chris will plot a path to the Golden Slipper 2025. There is the (G3) Canonbury Stakes coming up in a fortnight, but we will see how he comes through this race.”

“He’s the real deal,” said McDonald. “He has the most pure action and unbelievable demeanour about him and it’s going to take him a long way. You wait until you see him on good ground!”

Wodeton is the second foal of Listed Morphettville Guineas victress Fiera Vista (Exceed And Excel), half-sister to G2 AV Kewney S. winner Empress Rock (Fastnet Rock), and was purchased by Tom Magnier from Segenhoe Stud at the Magic Millions Gold Coast Yearling Sale. He was bred by Fairway Thoroughbreds, who remain in his ownership alongside astute investors including Wynaus, Sir Peter Vela, and Peachester Lodge.

Fiera Vista’s dam Empress Jade (Encosta De Lago) is a half-sister to dual G1 Hong Kong Sprint winner Silent Witness (El Moxie {USA}) and multiple Group-winning Sister Madly (Redoute’s Choice). Magnier purchased Wodeton’s half-brother by I Am Invincible for $1.15 million at this year’s Gold Coast sale, whereas Fiera Vista was exported to Great Britain in August.

Cavalry Girl charges home in Flemington to continue Dabernig’s hot streak

Second on debut in the $150,000 Geelong Diamond behind Cherish Me (Brazen Beau), Cavalry Girl (Bivouac) went one better on Saturday when she charged home in the $150,000 Punters Club Sprint at Flemington. The Tom Dabernig trainee added to her trainer’s hot streak that has seen the Warrnambool-based conditioner bring home winners every weekend for the last two months.

“She’s always been a very professional filly,” Dabernig said. “She was well found by (purchaser) Joe O’Neill, he’s a great judge and his record speaks for itself.

“Her first run, I think we ran into a reasonably smart one in the winner, but she did everything pretty right and then today, mid-race there was a little bit of shuffling of positions and it didn’t put her off her game.

“She was able to accelerate and win quite softly. I thought Linda (Meech) rode her very confidently.

“She’s got very good speed. It’s probably yet a little bit unknown (if she could handle the jump to 1200 metres for a G1 Blue Diamond S.), but at this stage, she’s got very good recovery, good lungs and she did that quite comfortably.”

Bred by Mr P Hodgens and Mr Rob Piper, Cavalry Girl was offered at the Inglis Classic Yearling Sale last year in Vinery Stud’s draft, where Joe O’Neill’s Prime Thoroughbreds paid $110,000 to take her home. She is the first foal from dual winner Islands (I Am Invincible), a half-sister to G2 Reisling S. and R. Listed Magic Millions 2YO Classic winner Military Rose (General Nediym), who is the grandam of high class colt Espionage (Zoustar).

Gallery: Image courtesy of Racing Photos

At this year’s Gold Coast sale, Myracehorse, Bjorn Baker, Clarke Bloodstock (FBAA), and Belmont Bloodstock Agency (FBAA) combined to purchase Cavalry Girl’s half-sister by The Autumn Sun out of Vinery’s draft for $350,000. Islands has a filly foal at foot by Russian Revolution and visited G1 Golden Slipper S. winner Shinzo in November. Saturday's victory brings first season sire Bivouac up to three winners in his first crop.

Second winner for Doubtland with Eagle Farm debutante

Dushenka (Doubtland) delivered Widden Victoria’s young stallion Doubtland his second winner from three starters on Saturday with a 2.28l win in the opening $85,000 QTIS 2YO Handicap at Eagle Farm. Trained by Stuart Kendrick, she was a winner of her last trial at the Sunshine Coast before crossing the state for her debut. The much-fancied Space Rider (Zoustar), who was an emergency in last night’s R. Listed Magic Millions 2YO Classic, finished fourth.

"When you turn up taking on a $1.10 favourite, it's hard to be too confident, but we did think she'd run a forward race," stable representative Bayley Kendrick said.

"She's a well-built filly that we've had a lot of time for and she's really matured up nicely. Going straight to the 1200 metres was never going to be a problem for her. In her recent trial at the Sunshine Coast, she got the better of another horse of ours that we've got a bit of time for.

"It's great to launch her career this way. There's a bit to be excited about."

Bred by Peter Toole and family, Dushenka was offered at the Magic Millions Adelaide Yearling Sale by Toole’s Ducatoon Park, where Champagne Bloodstock purchased the filly for $90,000. She is the fifth winner from the versatile four-time winner Tsarina Wonder (Churchill Downs), making Dushenka a half-sister to G3 Ottawa S.-placed Empress Of Wonder (Choisir) and Listed Silk Stocking H. runner-up Wonderful Riri (Barbados).

Tsarina Wonder has a yearling filly by Fierce Impact (Jpn) and was served by Artorious in November.

Naughty Secret plays it straight in Ascot victory

Our Naughty Secret (I’m All The Talk) put it all together at start number three for Steve Wolfe on Saturday, when she bounded away with the $80,000 Magic Millions Plate at Ascot. The 2-year-old filly appreciated the step up to 1200 metres in Saturday’s race, having finished outside the placings at her two previous starts over 1000 metres.

“I was very confident that she would go close today, barring the barrier,” said Wolfe. “I’m very grateful for Jade (McNaught, jockey), she’s one of the unsung heroes of the industry, she never complains, she rides a lot of work for me and several other people around. When we get the opportunity, we put her on, and she’s more than capable.

Gallery: Images courtesy of Western Racepix

“It’s exciting to win one with a 2-year-old that we have had ticking along, and I thought this one could be the one all the way along.

“It was a beautiful ride. About the 200 metres, I thought she could win. You never get sick of winning, do you?”

Bred by Dr CP Gales and Mrs A Gales, Our Naughty Secret is the first foal from four-time winner Time And Truth (Oratorio), from the family of G1 Railway S. winner Hardrada (Marooned {GB}) and nine-time winner Mood Swings (War Chant {USA}), winner of the Listed Black Heart Bart S. in September. Our Naughty Secret was a $60,000 Magic Millions Perth Yearling Sale purchase for Commercial Bloodstock Services (FBAA) from the draft of Gervase Park Stud. Time And Truth has a filly foal at foot by A Lot, and returned to the stallion in September.

Nev flashes home with wide margin finish in Townsville

Nev (Spieth {NZ}) stepped up to the plate at Townsville on Saturday, going one better than his last start second to win the $21,000 QTIS 2YO H. by 4.65l. Trained by Joshua Manzelmann, the 2-year-old gelding was having his fourth start, having debuted fourth in early December behind dual winner Satisfied Mugs (Invader).

Bred and retained by Burgs Racing, Nev is the first living foal from dual winner Cadabra (NZ) (Red Giant {USA}), who is a half-sister to 10-time winner Rinviata (NZ) (Postponed {NZ}) and a a close relation to Listed Princess S.-winning Improvise (Hinchinbrook).

Cadabra produced a colt by G2 Bill Stutt S. winner Glenfiddich in the spring, before visiting Stronger in October.

Cover image courtesy of Keeneland

The Kentucky-based private-equity firm founder and manager John Stewart, whose aggressive spending and outspoken attitude have made a big splash in the global bloodstock and racing worlds since he entered the Thoroughbred business from scratch a little more than a year ago, is being sued in a New York court by an investment firm that provided initial funding for Stewart's MiddleGround Capital. That plaintiff, Archean Capital Partners, is now alleging that Stewart and other MiddleGround defendants are acting in “bad faith” for purportedly falling behind and refusing to pay $22 million in contractually due revenue shares.

The lawsuit, which was filed Dec. 23, 2024 in New York Supreme Court but had been under seal until a judge ordered it made public Jan. 9, 2025, alleged that the MiddleGround defendants have been “diverting funds that should have been paid to Archean as its share of Defendants' revenue to satisfy Defendants' other obligations or business pursuits.”

The suit stated that Archean was “surprised” during an October 2024 meeting when Stewart, via written report, “revealed that one of the ways MiddleGround Management had used the cash it received through the MiddleGround Funds was to satisfy numerous other personal financial obligations, including taxes, various unapproved capital expenditures, and his required funding obligations” as the general partner in a subsequent MiddleGround fund.

Although the civil complaint did not make a specific claim that the allegedly diverted money went to fund Stewart's horse racing ventures at Resolute Racing, the lawsuit did state that Stewart's immersion into the sport has detracted from the time and attention Archean expected him to spend running MiddleGround.

The lawsuit stated that, “Stewart has also pursued other outside ventures in a manner that runs afoul” of an Apr. 2, 2018, agreement between Archean and MiddleGround in which Archean provided an initial $75 million capital commitment in exchange for a certain agreed-upon share of the revenue received by MiddleGround.

That agreement, according to the lawsuit, also stipulated that Stewart and other MiddleGround principals were supposed to “devote the substantial majority” of their working time to managing the funds. Archean's suit stated that Stewart instead focused on his Thoroughbred endeavors.

“Without Archean's approval, Stewart directed his time and attention away from management of the MiddleGround Funds to support his outside ventures,” the lawsuit stated. “By way of example, Stewart began to heavily invest in '(horse) racing and bloodstock,' including spending over $25 million at a public auction in 2023 and eventually acquiring Shadayid Stud from Shadwell Farm, (now) renamed Resolute Farm.

“Stewart's newfound interest in buying, selling, and raising Thoroughbred horses has diverted his attention from growing and managing the MiddleGround Funds and, on information and belief, has caused him to spend less than the 'substantial' amount of time he is required to devote to the management of the Funds,” the lawsuit stated.

“Stewart was contractually required to obtain Archean's written approval before making this type of investment (i.e., purchasing 'all or a substantial portion' of the 'assets or business…of any third party') and to provide notice when devoting less than the required 'substantial majority' of time to working on the MiddleGround Fund, but he failed to obtain such approval or provide such notice,” the lawsuit stated.

Reached Thursday evening by TDN, Stewart issued the following statement when asked for his side of the story:

“We can't comment on ongoing litigation. Unfortunately in private equity this happens from time to time. This is the first time MiddleGround has ever been involved in any litigation and we are confident that our position is justified. We trust the legal process and we look forward to our opportunity to tell our side of the story.”

About an hour later on Jan. 16, Stewart posted a longer statement to his social media account on X (see below). It read, in part:

“With my recent rise in the racing community, my name has attracted considerable media attention.

“The private equity industry is fiercely competitive, and disputes can occasionally emerge. I take great pride in my professional reputation, and I have successfully avoided litigation throughout my 30 years in business-until now.

“Unfortunately, that record has been compromised. Late last year, we faced a disagreement with an organization we believed was attempting to leverage litigation to pressure us into an unfair agreement.

“I am not easily intimidated, and I firmly believe in confronting bullies…

“I recognize that the racing industry can be filled with speculation, and my critics will seize this opportunity to undermine my integrity. This is regrettable, and in times like these, we discover who our true friends are.”

Archean described itself in the suit as “a private market investment platform” that often serves as a lead investor by providing funding ahead of other investors. As part of its return for taking that initial risk, Archean receives a share of the revenue generated by private equity fund managers.

“Archean's initial infusion of capital in private equity funds provides these burgeoning funds with the critical early capital that these private equity funds need to make initial investments and raise additional capital from third-party investors,” is how the lawsuit described a typical arrangement, like the one it purportedly entered into with MiddleGround.

In serving as the “anchor investor,” Archean “has no input on, and no advance transparency into, how the MiddleGround Principals invest the capital they received from Archean (and) that is by design,” the lawsuit stated. “Archean sought to provide Defendants with the autonomy necessary to carry out their business while providing the initial capital investment to allow the initial MiddleGround Fund (and hence subsequent MiddleGround Funds) to raise additional investor capital, execute its investment program, and flourish.”

The suit continued: “Archean expected Defendants to exercise that autonomy in accordance with their fiduciary responsibilities. However (the defendants) improperly exercised that a“Pursuant to the revenue sharing provision in the Letter Agreement, Defendants owed Archean a percentage of certain fees they earned from the MiddleGround Funds. Though Defendants have made sporadic payments over time since the inception of the initial MiddleGround Fund in 2018, the outstanding amount of revenue sharing that Defendants owe Archean has dramatically grown over time, with the amount due currently sitting at more than $22 million (and growing).”

“Until very recently, Defendants did not dispute that they owed Archean this amount,” the suit stated. “Defendants confirmed the current amount of revenue sharing fees owed to Archean as recently as Oct. 31, 2024, and had, during the prior year, provided Archean with accounting information that contained the same amount of fees…”

The suit stated that, “Stewart, in particular, was adamant that these amounts would be paid. In October 2024, Stewart emailed employees of Archean promising to 'bring (their) obligations to (Archean) current' and assured Archean of his 'commitment to honoring (his) financial obligations,' including 'liquidat(ing) personal assets if necessary to ensure (Archean) (is) compensated.'”

The lawsuit alleged that on Dec. 4, 2024, “after Archean raised the specter of legal action if Defendants did not make substantial progress in paying Archean the October 2024 Outstanding Amount, Stewart did an about face, claiming for the first time that the Revenue Share had been miscalculated and, contrary to the parties' years-long agreement of the meaning of the contract, took the position that Archean was not owed the October 2024 Outstanding Amount after all, and that it was Archean that owed MiddleGround Management money.”

The suit concluded by asking for the court to award Archean the “October 2024 Outstanding Amount and any additional amounts that are accrued and unpaid” as of the date of judgment; declaring that any future revenue share payments are due immediately, and declaring that Defendants will “fully and completely indemnify Archean as contemplated by the contracts between the parties.”utonomy and breached the duties that Archean entrusted to them.