Investigating Potential Claims involving Zea Capital Fund LLC
According to the prospectus, Zea Capital Fund LLC is a non-diversified closed-end management investment company that has elected to operate as a business development company and that seeks to invest in private buy-out, recapitalization and late-stage growth companies located primarily in middle America.
“Our Common Units will not trade on any securities exchange, and our plan is to wind down the Fund within approximately ten to twelve years. Accordingly, purchasers of our Common Units should understand that our Units will have limited or no liquidity and that they will be required to bear the investment risk for the term of the Fund. Neither the SEC nor any state securities commission have approved or disapproved of these securities or determined if this Prospectus is truthful or complete.”
The prospectus also states that “THE SECURITIES OFFERED HEREBY INVOLVE A HIGH DEGREE OF RISK… AND AN INVESTMENT IN THE FUND SHOULD BE CONSIDERED HIGHLY SPECULATIVE.”
The original offering price of Zea Capital Fund LLC was $12.50/unit. The Fund’s unaudited net asset value per Unit was $4.28 as of September 30, 2010.
Investing in a Business Development Company – Worth the risk?
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, possibly, the sale of their shares.
Non-traded BDCs are high-risk investments. They typically have high commissions, and lack liquidity–similar to real estate investment trusts (REITs).
The White Law Group continues to investigate potential claims against the broker dealers that sold high risk investments, like Zea Capital Fund LLC.
Broker-dealers are required to perform adequate due diligence on any investment they recommend. They should also ensure that all recommendations are suitable for the investor. Recommendations should be appropriate in light of the investor’s age, risk tolerance, net worth, and investment experience.
Recover your Losses
Broker-dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses in a FINRA arbitration claim.
FINRA (The Financial Industry Regulatory Authority) operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.
If you have lost money investing in Zea Capital Fund LLC at the recommendation of your broker, the securities attorneys at The White Law Group may be able to help you through FINRA arbitration. Please call The White Law Group at 1-888-637-5510 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 Vero Beach, Florida. To learn more about The White Law Group visit www.whitesecuritieslaw.com.