February 19, 2017 Comments (0) Current Investigations

FS Credit Real Estate Income Trust Inc. Non-Traded REIT

Benefit Street Partners Realty Trust
(Last Updated On: February 22, 2017)

FS Investments Launches a Non-traded REIT, FS Credit Real Estate Income Trust Inc.

FS Investments, the sponsor of non-traded BDCs, launched a $2.5 billion commercial mortgage nontraded REIT this week.

According to their website, FS Investments is a leading asset manager founded in 2007 as Franklin Square Capital Partners. It is headquartered in Philadelphia with offices in Orlando and Washington, DC. The firm currently manages six funds with over $18 billion in assets under management as of September 30, 2016. Its affiliated broker-dealer, FS Investment Solutions, LLC distributes its offerings.

According to Investment News, the new REIT, FS Credit Real Estate Income Trust Inc., will have its net asset value calculated daily and offer four share classes. Its “T” share, for client accounts that pay commissions, will initially cost $25 per share.

The company’s longtime partner, Blackstone recently launched a daily NAV, nontraded REIT, the Blackstone Real Estate Income Trust Inc., to sell through wirehouses and independent broker-dealers. Now FS Investments is joining the game.

GSO Blackstone has been the sub-adviser on several nontraded BDCs under the brand of FS Investments, which was formerly called Franklin Square. GSO is Blackstone’s credit-oriented alternative asset manager.

FS Investments has recently registered a handful of other funds, including the FS Energy Total Return Fund and the FS Diversified Income Fund.

Non-Traded REITs are risky.

Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITS, are considerably more complex.  REITs involve a high degree of risk. Unfortunately, many investors are unaware of the risks and liquidity problems with REITs such as FS Credit Real Estate Income Trust Inc.

The White Law Group has represented numerous investors in claims against the brokerage firm that recommended non-traded REITs to its investors.

Broker dealers are required to perform adequate due diligence on any investment they recommend. They must insure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.

Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses.

If you have invested in a non-traded REIT and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.