In his fifth start, he won the grade two Gotham Stakes at 1 1/16 miles at Aqueduct Racetrack, beating Seeking the Gold and Perfect Spy under jockey Chris Antley.
Then he won the $500,000 grade one Wood Memorial Stakes, where he defeated Seeking the Gold again and began a heated rivalry with his foe that lasted two years.
Private Terms finished ninth behind Winning Colors, Forty Niner and Risen Star, beaten just under six lengths.
Lacking a strong close, Private Terms finished fourth, four lengths behind Risen Star, Brian's Time and Winning Colors.
Later that year, it looked like Private Term might be a threat in the grade one Super Derby when after he won the preparatory Prelude Stakes, but he ran fourth behind Seeking the Gold, Happyasalark Tomas and Lively One.
Soul of the Matter avenged his sire’s loss in the Super Derby of 1994 and won or placed in eight other graded races, including a second in the Dubai World Cup.