Post by Logan on Feb 25, 2016 13:00:15 GMT -6
Advisors In Crosshairs After Aequitas Capital Collapse
Chris Bean is living one of an advisor’s worst nightmares.
Bean, an advisor with Private Advisory Group, a Redmond, Wash.-based RIA, is calling investors and becoming a public voice in the media after Lake Oswego, Ore., asset manager Aequitas Capital Management appears to have collapsed.
“These people were lying to my face,” Bean says. “Not just to me, but to my clients, too, who are now facing substantial financial losses. I’m angry that someone has put us into this position.”
On Tuesday, Aequitas Capital hired FTI Consulting to assist in restructuring and a likely bankruptcy.
Bean says the news of Aequitas’s problems took him by surprise. Around 330 of his clients have a portion of their assets invested with Aequitas, and he was adding to their positions as late as December 2015.
“We’re learning that their assets were overstated,” Bean says. “They had to restate their financials and what originally looked like $650 million in book value quickly went to $321 million of unsubordinated assets in private notes that weren’t even worth the $321 million.”
Read more: www.fa-mag.com/news/advisors-in-the-crosshairs-after-aequitas-capital-collapse-25340.html
Chris Bean is living one of an advisor’s worst nightmares.
Bean, an advisor with Private Advisory Group, a Redmond, Wash.-based RIA, is calling investors and becoming a public voice in the media after Lake Oswego, Ore., asset manager Aequitas Capital Management appears to have collapsed.
“These people were lying to my face,” Bean says. “Not just to me, but to my clients, too, who are now facing substantial financial losses. I’m angry that someone has put us into this position.”
On Tuesday, Aequitas Capital hired FTI Consulting to assist in restructuring and a likely bankruptcy.
Bean says the news of Aequitas’s problems took him by surprise. Around 330 of his clients have a portion of their assets invested with Aequitas, and he was adding to their positions as late as December 2015.
“We’re learning that their assets were overstated,” Bean says. “They had to restate their financials and what originally looked like $650 million in book value quickly went to $321 million of unsubordinated assets in private notes that weren’t even worth the $321 million.”
Read more: www.fa-mag.com/news/advisors-in-the-crosshairs-after-aequitas-capital-collapse-25340.html