The Investment Fund that Won’t Stop Growing: Energy Flex Fund to Cross 25 Million in AUM
The energy sector is known for being difficult to invest in and when it comes to the oil and gas industry in particular, it can be even harder. This is a lesson that Brent Franklin learned the hard way.
Despite having a background working in the oil and gas industry, when Brent switched to becoming an investor, he was faced with a number of hoops.
I
n his words: “I started partnering with people, and I didn't realize that they were taking advantage of me without me knowing it. I got beat out on paperwork, I got beat out on contracts, I got lied to about the production.”
Despite this, he knew that there were plenty of good investments to be had in the industry, and decided to keep at it. His plan was to buy distressed assets that just needed some TLC (tender loving care) to start turning a profit.
Over time, he was able to find reputable companies and operators to work with and started to see a nice return on his investments. That being said, there was still so much untapped potential in the industry.
So, he decided to start the Energy Flex Fund under his wealth management company—Rise Capital. The fund was designed to make investing in the oil and gas industry accessible, understandable, and of course—profitable. He explains:
I really started this [fund] because I wanted to create a way for investors to have options and to be able to diversify their portfolio based on their risk tolerance and their financial needs. I didn't want them to have to go through the learning experience or the learning curve of trying oil and gas on their own. I wanted them to be able to skip the line and partner with professional companies across the oil and gas industry…
The fund is quickly approaching 25 million in AUM (assets under management). One of its recent success stories happened in March when it acquired the Concho property.
At the time, the property was only producing four barrels a day. But, with some much-needed TLC, the production was increased by 875%—delivering investors a 50% cash-on-cash return.
Designed for accredited investors with a busy lifestyle, the Energy Flex Fund allows investors to pick and choose each investment like they would stocks.
This allows for high-diversification opportunities along with all the tax advantages that come with investing in oil and gas.
In short, the Energy Flex Fund provides a simplistic way to manage active investments.
The board members involved in the fund are 20 to 30-year-old veterans in the industry who believe that this investing model is ideal for new investors who don’t want to “put all their eggs in one basket.”
Part of what makes the model so great is that the Energy Flex Fund acts as a single investor making it easy to create and maintain existing relationships in the industry and structure favorable deals for both parties.
Additionally, this investment approach is ideal for doctors and other potential investors who don’t have the time to manage their investments but would like to take advantage of the tax benefits and high returns that oil and gas can bring.
Aiming to educate investors, the fund will soon be launching a YouTube channel that explains how oil and gas works.
All in all, the Energy Flex Fund has grown tremendously and will soon reach 25 million in AUM, bringing passive and lucrative investment opportunities to the busy investor.
This is not financial advice, consult a professional before making any investment decisions.
