Aequitas Capital Investigation
Recent news reports revealed that Aequitas, blaming “liquidity challenges”, cash flow issues, and a shortage of new investments, has failed to repay investors on schedule and has suspended any repayment of investors’ Aequitas private notes. These recent news reports also revealed sudden, massive layoffs by Aequitas, as well as investigations of Aequitas by the Securities and Exchange Commission and the federal Consumer Financial Protection Bureau.
The source of the Aequitas problems is believed to stem from the $561 million purchase of student loans from now-defunct for-profit Corinthian College.
All of this comes on the heels of revelations concerning Aequitas’ involvement with Corinthian Colleges, Inc., the legally-troubled for-profit college operator which filed for bankruptcy in 2015.
The investigation concerns Aequitas Capital Management, Inc., and Aequitas Investment Management, LLC, as well as certain Aequitas investment funds and other Aequitas investment vehicles, including:
- Aequitas Capital Opportunities Fund, LP
- Aequitas Commercial Finance, LLC
- Aequitas ETC Founders Fund, LLC
- Aequitas Income Opportunity Fund, LLC
- Aequitas Income Opportunity Fund II, LLC
- Aequitas Income Protection Fund, LLC
- Aequitas Private Client Fund, LLC
More Information
-
2/24/2016
Aequitas Meltdown Underscores the Importance of Due Diligence, Caution
Investment News