March 30, 2017 Comments (0) Current Investigations

FS Global Credit Opportunities Fund Investment Losses

Recovery of Investment Losses in FS Global Credit Opportunities Fund
(Last Updated On: March 31, 2017)

Recovery of Investment Losses in FS Global Credit Opportunities Fund

Have you suffered losses investing in FS Global Credit Opportunities Fund? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

FS Global Credit Opportunities Fund (FSGCO) is an unlisted, closed-end business development fund (BDC) launched by Franklin Square Capital Partners. The fund invests primarily in global corporate credit, including loans, bonds and other credit instruments that companies use to finance their operations.

The fund seeks to invest in securities of companies that are operating across diversified sectors. It primarily invests in global credit, including secured and unsecured floating and fixed rate loans, bonds, and other credit instruments that companies use to finance their operations, according to Bloomberg.

The fund’s investment objectives are to generate an attractive total return with a secondary objective of capital preservation.

FS Global Credit Opportunities Fund Risk Factors

(from the prospectus)

-An investment in common shares is not suitable for an investor if they need access to the money they invest.

-Shareholders should consider that they may not have access to the money they invest for an indefinite period of time.

-Unlike an investor in most closed-end funds, shareholders should not expect to be able to sell their common shares regardless of how performs.

-If a shareholder is able to sell their common shares, the shareholder will likely receive less than their purchase price and the then current NAV per common share.

Risks of BDCs

Business Development Companies operate much in the same was as REITs (Real Estate Investment Trusts) with non-traded BDCs having many of the same problems for investors as non-traded REITs – like high-risk, high commissions, and lack of liquidity.

The White Law Group has represented a number of investors over the last few years in BDCs. The firm continues to investigate the liability that brokerage firms may have for recommending high-risk BDCs, like FS Global Credit Opportunities Fund, and other Franklin Square offerings.

Brokerage firms are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor in light of that particular investor’s age, investment experience, net worth, risk tolerance, investment objectives, and income.  Firms that fail to perform adequate due diligence or that make unsuitable recommendations can be held responsible for investment losses in a FINRA arbitration claim.

If you suffered losses investing in a FS Global Credit Opportunities Fund or another Franklin Square offering and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.  The firm represents investors in FINRA arbitration claims throughout the country.  For more information on the firm, visit http://www.whitesecuritieslaw.com.