Akin Gump Lawyers Pen Article for The Hedge Fund Law Report on Structuring Private Funds Amid Declining Oil Prices
The Hedge Fund Law Report has published the article “Structuring Private Funds to Profit from the Oil Price Decline: Due Diligence, Liquidity Management and Investment Options,” written by Akin Gump lawyers James Deeken, a partner in the investment management practice, and Shubi Arora, Jhett Nelson and Stephen Harrington, partner, counsel and associate, respectively, in the oil & gas and natural resources practice.
The article examines the recent fall in oil prices and the resulting opportunities in various areas of the energy sector. If prices hold at current levels, the authors write, oil companies will remain under pressure “as reserves are increasingly valued at lower prices, interest rates move upward and poorly hedged [exploration and production] companies and counterparties face unfavorable positions.” At the same time, however, they note that distressed investors will see “plenty of opportunities to extract value from current market conditions.” The authors also offer some considerations for investment funds when structuring funds for distressed investments.
To read the full article, please click here.