If you have suffered losses in certain funds EnerVest Ltd, you may be able to recover your losses through FINRA arbitration. Please call Kons Law Offices at (312) 757-2272 for a FREE, NO OBLIGATION consultation to discuss your investment loss recovery options.
According to several reports, several of EnerVest’s energy funds that used leverage to purchase oil and gas wells when crude prices were high have reported that investors in those funds will suffer signficant losses on their investments. According to reports, there have been discussions to recapitalize or otherwise sell assets from the $1.5 billion EnerVest Energy Institutional Fund XII, which closed in 2010, and the $2 billion EnerVest Energy Institutional Fund XIII, which closed in 2013.
EnerVest is a private-equity firm that focuses on energy investments, claiming to operate more U.S. oil and gas wells than any other company. EnerVest began raising and investing large sums of money in 2013 when oil was being traded at an average of $90 a barrel, and experienced huge losses when oil prices crashed.
Traditionally, EnerVest’s funds would have seen a return of about 30%, raising more cash for new projects- but several energy companies were negatively impacted by the drop of crude oil prices, and EnerVest was amongst them. The size of this loss is highly unusual as only seven private-equity funds, like EnerVest, worth more than $1 billion have lost money for investors, and even then, losses of 25 percent or more are unheard of. This has been cited from an analysis done by investment firm Cambridge Associates and public pension records.
If you are an investor that has suffered losses investing with EnerVest, you may be able to pursue a recover to your losses through FINRA arbitration or securities litigation. Please call Kons Law Offices at (312) 757-2272 for a FREE, NO OBLIGATION consultation to discuss your investment loss recovery options.
Kons Law Offices represents investors nationwide in securities arbitration and litigation matters. To learn more about the Firm’s securities litigation and FINRA arbitration practice, please visit www.investmentlossattorney.com.