July 20, 2017 Comments (0) Blog, Current Investigations

Griffin-Benefit Street Partners BDC Corp. Reorganization Plan

Griffin-Benefit Street Partners BDC
(Last Updated On: July 28, 2017)

Benefit Street Exits as Sub-Adviser to Griffin-Benefit Street Partners BDC 

Have you suffered investment losses in Griffin-Benefit Street Partners BDC? If so, the securities attorneys at The White Law Group may be able to help you recover your losses through FINRA Arbitration.

Griffin-Benefit Street Partners BDC’s $1.5 billion offering was declared effective in January 2015 and suspended its offering in March 2016 after raising $45 million, according to Summit Investment Research. The company’s $35.2 million portfolio consists of investments in 32 portfolio companies, as of the first quarter of 2017.

According to an SEC filing, Griffin-Benefit Street Partners BDC Corp. will change its name to Griffin Capital BDC Corp. at the end of the month. Benefit Street Partners will no longer serve as sub-adviser to Griffin-Benefit Street Partners BDC Corp., effective July 31st.

Griffin Capital BDC Advisor and Benefit Street revised an agreement where Benefit Street no longer had an obligation to share certain expense or distribution support obligations in March 2017. Last week, Benefit Street informed Griffin Capital that it would not extend the term of the agreement.

Last year, the company’s board determined that it was in the company’s and the stockholders’ best interest to suspend the offering due to unfavorable market conditions, as well as the belief that the company’s current structure was not conducive to continuing the offering.

The board later approved a plan of reorganization with Griffin Institutional Access Credit Fund, an affiliated interval fund, where Griffin-Benefit Street Partners BDC plans to transfer all of its assets to the fund in exchange for shares. The reorganization plan is subject to stockholder approval.

The BDC and its adviser have identified an interim sub-adviser to assist in overseeing the company’s portfolio until the reorganization is complete. Additional information on the new sub-adviser relationship is expected to be disclosed by the end of the month.

What is a BDC?

A Business Development Company (“BDC”) is a type of investment company that invests in small and mid-sized businesses. Investors can buy shares in a BDC, and the money from their investments are used to fund the businesses. In turn, investors can profit from dividends paid on their investments, or, in some cases, the sale of their shares. For an in depth look at BDCs, go here.

Like all investments, BDCs do not come without risks. Limited liquidity, distributions that may not be guaranteed in frequency or amount, and limited operating history are just a few risks that investors take on when investing in a BDC.

Business Development Companies can be a good investment for the right investor, along with a diversified portfolio and sufficient due diligence. BDCs should only be recommended to those investors who are able to both weather substantial losses and those who are not in need of immediate liquidity. Investors should be particularly cautious of riskier non-public and non-traded BDCs.

If you invested in Griffin-Benefit Street Partners BDC or another BDC and would like a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.

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.  For more information on the firm and its representation of investors, visit http://www.whitesecuritieslaw.com.