Investigating Potential Claims Involving Fifth Street Mezzanine Partners III LP
Have you suffered losses investing in Fifth Street Mezzanine Partners III LP? If so, the securities attorneys at The White Law Group may be able to help you recover your investment losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
Fifth Street Mezzanine Partners III LP is based out of New York. The firm last filed a Form D (private placement) notice of exempt offering of securities in 2007. The filing states the business was to make, hold and dispose of mezzanine investments.
Fifth Street Mezzanine Partners became Fifth Street Finance (FSC) in 2008.
On March 23, 2016, the Division of Enforcement of the SEC sent subpoenas and document-preservation notices to FSC and related entities. The SEC is investigating (1) how the company values its portfolio companies and investments, (2) the expenses that were charged to Fifth Street Finance, (3) trading in BDCs by Fifth Street’s hedge funds, (4) statements made to the board and investors about the fair value of its investments and the fees charged to investors, (5) its policies and procedures, (6) statements and potential omissions in SEC filings, (7) the entities’ financials and records and whether they fairly and accurately reflect transactions, and (8) several other issues relating to the company’s books and records.
The Risks of Investing in Reg D Private Placements
Private placements are a means for smaller companies to raise capital through the sale of equity or debt securities without having to register their securities with the SEC. These investments are often riskier and more complicated than traditional investments, and are only suitable for high net worth, sophisticated investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.
Despite the risks of investing in this type of alternative investments, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling alternative investment products like Fifth Street Mezzanine Partners III LP to their clients.
If you lost money investing in Fifth Street Mezzanine Partners III LP or another private placement investment and would like to speak with a securities attorney about your options, please call 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.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.