March 17, 2017 Comments (0) Blog, Current Investigations

Vertical Capital Income Fund Investment Losses

Vertical Capital Income Fund Investment Losses, Featured by Top Securities Fraud Attorneys, The White Law Group

Concerned about investment losses in Vertical Capital Income Fund?

Have you suffered losses investing in Vertical Capital Income Fund? If so, The White Law Group may be able to help you recover your losses through FINRA Arbitration.

According to their website, Vertical Capital Income Fund is a closed-end, continuously offered interval fund that primarily invests in residential whole mortgage loans and residential whole loans secured by deeds of trust.  As a closed-end interval fund, it provides limited liquidity on a quarterly basis. The investment objective of the Fund is to seek income.

“Investing in the Fund involves risks, including the risk that you may receive little or no return on your investment or that you may lose part or all of your investment. Therefore, before investing you should consider carefully the following risks that you assume when you invest in the Fund’s shares.”

According to Bloomberg,the Fund is a subsidiary of Behringer Harvard Holdings, LLC. As we told you, Behringer Securities LP changed its name to Provasi Capital Partners in October 2015. The name Behringer for many investors is associated with a number of non-traded REITs that cost many investors significant losses.

On January 31, 2017, Vertical Capital announced a temporary suspension of the offering of shares effective January 31, 2017, due to the delay in filing the 2016 annual report.

On February 28, 2017, Vertical Capital announced the suspension of the reinvestment of distributions into shares of Vertical Capital.

Update on June 3, 2019

In January 2019, Vertical Capital Income Fund filed a definitive proxy through which the board of directors was seeking shareholder approval for eliminating the fund’s fundamental policy of making quarterly repurchase offers for a minimum of 5% of the total outstanding shares at NAV.

The fund had a distribution rate of 5.8% in 2018, based on its most recent NAV per share of $11.99 per share as of December 14, 2018, and inclusive of a special distribution of $0.30 per share in December 2018.

Vertical Capital Income Fund(NYSE: VCIF) began trading on the NYSE as a closed-end fund on May 30, 2019. The fund opened at a disappointing $8.65/share on Thursday.

On May 31, the fund announced a distribution of $0.0184 per share. The May distribution was reduced by over $0.01 per share due to non-recurring costs relating to removing the Fund’s fundamental policy requiring the Fund to conduct repurchase offers for its shares, as well as additional non-recurring costs associated with listing the Fund’s shares on the New York Stock Exchange.

Investigation Provasi’s Vertical Capital

The White Law Group is investigating the liability that brokerage firms may have for recommending high-risk investments, such as Vertical Capital Income Fund to their clients.

Brokerage firms are required to perform adequate due diligence on the investments to ensure a reasonable likelihood of success, and to evaluate whether the investments are suitable in light of the client’s age, net worth, investment experience, and investment objectives. Firms that fail to perform adequate due diligence, or that make unsuitable recommendations, can be held responsible for losses in a FINRA arbitration claim.

If you suffered losses investing Provasi’s Vertical Capital Income Fund or another Provasi Capital Investment and would like to discuss your litigation options, please call The White Law Group at 888-637-5510 for a free consultation.

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

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