Secondary sales price for Sierra Income Corp. suggests losses for investors.
The White Law Group is continuing our investigation in regards to the liability that some broker dealers may have for unsuitably recommending Sierra Income Corp., a business development company, to investors. If you have suffered losses in Sierra Income Corp., you may have recourse through FINRA Arbitration.
The main focus of Sierra Income Corp. is on senior secured debt, as well as focus on subordinated debt, with a low priority on preferred and common equity. The fund invests 15% of its total portfolio in business services, while 10% focuses on the automotive sector. 3.9 % of Sierra’s investments are in the Energy Sector (oil and gas).
Business Development Companies (BDCs) such as Sierra Income Corp. are generally speculative, high risk investments and due to these risks are often unsuitable for most investors.
Liquidity Problems – Secondary Sales
Investors looking to sell BDCs, like Sierra Income Corp., often have difficulty finding a buyer, and can suffer significant losses on the sale.
Central Trade & Transfer, secondary market for private placement investments, recently listed shares of Sierra Income Corp. for $6.55 per share. This may be at a loss to investors, as the original purchase price was $10 per share.
According to recent SEC filings, the Company’s net asset value per share as of December 31, 2017 is $7.66 per share.
If you are concerned about your investment in Sierra Income Corp. or another BDC investment and would like to discuss your recovery options, please call the securities attorneys of The White Law Group at (888) 637-5510 for a free, no risk 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.
FINRA provides an arbitration forum for investors to resolve disputes. The White Law Group represents investors in FINRA arbitration claims throughout the country. Visit the firm’s homepage to learn more about the firm’s representation of investors.