Recovery of Investment Losses in VII Peaks Co-Optivist Income BDC II
Have you suffered losses investing in VII Peaks Co-Optivist Income BDC II? 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.
VII Peaks Co-Optivist Income BDC II, Inc. is an externally managed, non-diversified closed-end management investment company that is a business development company.
The company invests in discounted corporate debt and equity-linked debt securities of public and private companies that trade on the secondary loan market for institutional investors and provide distributions to investors.
According to recent SEC filings, on May 15, 2017, VII Peaks Co-Optivist Income BDC II, Inc. reported that it would not be able to file its Form 10-Q for the quarter ended March 31, 2017 in a timely manner, and would file the Form 10-Q as soon as possible.
What is a Business Development Company (BDC)?
A Business Development Company (“BDC”) invests in small and mid-sized businesses. Investors can buy shares in a BDC, and the money from their investments is 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.
BDCs were created in 1980 after Congress approved a series of amendments to the Investment Act of 1940. The creation of BDCs was meant to spur investment in smaller companies that couldn’t attract traditional forms of capital. BDCs have become increasingly popular in recent years, in part due to their ability to create strong returns on investment. However, BDCs are not without their risks and pitfalls.
Risks of Business Development Companies
Business Development Companies such as VII Peaks Co-Optivist Income BDC II, operate much like REITs (Real Estate Investment Trusts). Non-traded BDCs have many of the same problems for investors as non-traded REITs. They are high-risk, often have high commissions, and lack liquidity.
The White Law Group has represented a number of investors over the last few years in non-traded REITs and as well as BDCs– in large part because of their high commission structure and the possibility that nefarious financial advisors will push these products unsuitably to maximize their own commissions. As such, the firm is investigating the liability that brokerage firms may have for recommending high-risk BDCs, like VII Peaks Co-Optivist Income BDC II.
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 VII Peaks Co-Optivist Income BDC II 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, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. The firm represents investors in FINRA arbitration claims throughout the country. For more information on the firm, visit https://www.whitesecuritieslaw.com.