Brad Heppner and Hatteras Investment Partners

ChapmanAlbin is investigating potential claims involving broker-dealers who may have unsuitably recommended Hatteras Investment Partners Funds, causing significant losses for investors. The funds under scrutiny include:

• Hatteras Core Alternatives TEI Fund
• Hatteras Core Alternatives Fund
• Hatteras Core Alternatives TEI Institutional Fund
• Hatteras Institutional Fund

Hatteras Investment Partners once managed $1.5 billion in assets, but in 2021, it sold its funds to The Beneficient Company Group in a liquidation move, reportedly dropping to $400 million in assets. In 2024, a class action lawsuit alleging breach of fiduciary duty was filed against Hatteras directors and officers, claiming decisions that allegedly led to severe investor losses. Following the merger of Beneficient with Avalon Acquisition, Inc., Hatteras preferred shares converted to Beneficient stock, which quickly dropped from $8 to $0.08 per share, potentially causing Hatteras fund investors to lose up to 95% of their investments.

Additionally, due diligence failures, including ties to Beneficient founder Brad Heppner amid fraud allegations, may have impacted these investments. Financial advisors had a responsibility to ensure the suitability of these funds, especially for retail investors and retirees.