December 14, 2017 Comments (0) Blog, Current Investigations

Corporate Capital Trust II BDC – Suspends Offering

Corporate Capital Trust II BDC

Investigating Potential Claims Involving Corporate Capital Trust II BDC

Did you lose money investing in Corporate Capital Trust II BDC at the recommendation of your financial advisor?  If so, the securities attorneys of The White Law Group may be able to help you recover those losses. It’s possible to file a FINRA arbitration claim against the brokerage firm or financial advisor that recommended the investment to you.

Corporate Capital Trust II is a non-traded business development company (BDC) that invests in the debt of privately owned U.S. companies, with a focus on originated transactions sourced through the networks of its advisors. The offering was declared effective by the SEC in October 2015 and has reportedly raised $114 million in investor equity since inception.

The company intends to suspend its offering to new investors on January 10, 2018.

According to SEC filings, the board of trustees will also begin exploring changes to Corporate Capital Trust II’s advisory structure proposed by its current investment sub-adviser, KKR Credit Advisors.

The company may join other BDCs in a new strategic partnership between KKR and FS Investments, according to The DI Wire. KKR and FS Investments plan to create the largest BDC platform on the market, with approximately $18 billion in combined assets under management.

Is a Business Development Company a suitable investment for you?

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. The creation of BDCs was meant to spur investment in smaller companies that couldn’t attract traditional forms of capital.

Business Development Companies operate much in the same was as REITs (Real Estate Investment Trusts). Non-traded BDCs have many of the same problems for investors as non-traded REITs – like high-risk, high commissions, and lack of liquidity.

The White Law Group has represented a number of investors over the last few years in non-traded REITs and BDCs. Unfortunately, unscrupulous financial advisors will push these products to maximize their own commissions.

The firm is investigating the liability that brokerage firms may have for recommending high-risk BDCs, like Corporate Capital Trust II BDC.

Brokerage firms are required to perform adequate due diligence on any investment they recommend. They must 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 a Corporate Capital Trust II you may be able to recover your losses. Please call the securities attorneys of The White Law Group at 888-637-5510 for a free 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.  The firm represents investors in FINRA arbitration claims throughout the country.  For more information on the firm, visit https://www.whitesecuritieslaw.com.