AdultVest

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AdultVest, Inc. is an investment management company based in Beverly Hills, California. It was founded in 2005 by former hedge fund specialist Francis Koenig as an institutional investment company focusing exclusively on sex industry-related investments. [1] [2] Only accredited investors may invest in the fund; it caters to investors willing to invest more than one million dollars. [1] The firm is a former winner of the Hedge Fund Launch of the Year Award. [3]

Contents

Fraud accusations and exoneration

In January 2009, The Atlantic reported Koenig stating that AdultVest had made a 50% return. [3] The Business Insider stated that they were "deeply skeptical" about Koenig's claim of a 50% return because when they asked him how the company had made the money, Koenig referred to "valuing assets like iPhone porn startups and unsold domain names". [4] According to private equity source, FINAlternatives, and the SEC's exoneration letter referenced in the article, Koenig was misquoted. The actual 50% claim was, instead, a 50% increase in the per unit buy-in price based on the fund's progress. [5] The SEC reviewed the company and concluded that all funds were correctly accounted for, and the fraud case was closed in April 2010, with Koenig being exonerated in an official letter. [6]

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References

  1. 1 2 Sloan, Paul (2007-02-13). "Getting in the Skin Game". CNNMoney.com. Cable News Network LP, LLLP. Archived from the original on 9 March 2007. Retrieved 2007-03-07. Francis Koenig, a former Wall Street hedge fund executive who is now based in Los Angeles, believed that there were riches to be made by matching investors with 'adult entertainment' companies.
  2. ↑ "Company Overview of AdultVest, Inc". Bloomberg . Bloomberg. April 21, 2016.
  3. 1 2 Johansmeyer, Tom (January 2009). "Dirty Sexy Money". The Atlantic . The Atlantic Monthly Group.
  4. ↑ Weisenthal, Joe (2009-01-06). "Porn-Investing Hedge Fund Claims 50% Return". The Business Insider .
  5. ↑ "Porn Hedge Fund Founder Defends Investment Decisions". FINtech. FINalternatives. 2009-04-08. Archived from the original on 2011-01-01.
  6. ↑ Weisenthal, Joe" (April 10, 2009). "Porn Hedge Fund Accused Of Fraud, Exonerated". Business Insider .
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