Our Posts

Former $2 billion private equity finance fund now nearly useless: WSJ

(Reuters) – Wells Fargo (N:WFC) and many other lenders are negotiating to seize control of the hedge fund formerly worth greater than $2 billion that’s now worth just about nothing, based on a study in the Wall Street Journal.

EnerVest Limited., a Houston private equity finance firm that concentrates on energy investments, manages the non-public equity fund that centered on oil investments. The fund leaves clients, including major pensions, endowments and charitable foundations, with for the most part pennies around the dollar, WSJ reported.

The firm elevated and began investing money starting in 2013 when oil was buying and selling around $90 a barrel and added $1.3 billion of lent money to improve its buying power. West Texas Intermediate crude prices closed at $46.54 a barrel on Friday.

“We’re not happy with the end result,Inch John Master, EnerVest’s co-founder and leader, authored within an email towards the Journal.

Only seven private-equity funds more vital than $1 billion have ever lost money for investors, based on data from investment firm Cambridge Associates LLC reported within the report. Among individuals associated with a size to finish at a negative balance, losses more than around 25 % are very rare, though there are many energy-focused funds at risk of doing this, based on public pension records.

Clients incorporated the J. Paul Getty Trust, John D. and Catherine T. MacArthur and Fletcher Johnson foundations, which each and every invested millions within the fund, based on their tax filings, the Journal reported. Michigan Condition College along with a foundation that supports Arizona Condition College also disclosed investments within the fund.

The Oc Employees Retirement System seemed to be an investors and it has apparently marked the need for its investment lower to zero.

Leave a Reply

Your email address will not be published. Required fields are marked *