Report: Coakley, US regulators probe Oppenheimer fund

US regulators and Massachusetts Attorney General Martha Coakley are investigating whether an Oppenheimer Holdings Inc. fund overstated the value of a holding, The Wall Street Journal reported, citing unnamed sources.

The potential overstating grew to more than $4 million, according to documents shared with investors, helping to push the fund’s reported internal rate of return to 38 percent after fees, from a loss of 6.3 percent.

The fund then raised at least $55 million from individuals and institutions, including the cities of Quincy and Brockton. Oppenheimer spun off the fund this year.


Inflated valuations by private equity firms have become a regulatory focus, according to recent comments by officials. The SEC and Coakley have been investigating since at least the fall, two people told the Journal.

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The attorney general’s office declined to comment to the Globe last night.

Oppenheimer said it initiated its own investigation in June, but found no wrongdoing.

The case involved the Oppenheimer Global Resource Private Equity Fund LP, which makes investments of its own and invests in other private-equity funds. It currently manages $140 million, but had about $20 million when it was launched in April 2008.