October 5, 2018 Comments (0) Blog, Current Investigations

VII Peaks Co-Optivist Income BDC II

VII Peaks Co-Optivist Income BDC II

VII Peaks Co-Optivist Income BDC II – Investigating Potential Claims

Are you concerned about your investment 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 (BDC).

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 letter to investors, on October 1, 2018, the company reported that the fund has not made a distribution since the declared distribution from March 2018. “We are currently working vigorously to restore liquidity back in the Fund that will be in excess of the capital needed to run Fund operations, so that the Fund can be in a position to resume regular distributions. While the amount and timing of distributions are at the discretion of the Fund’s Board of Directors, after making distributions consistently since the inception of the Fund, we understand and appreciate your frustration around timing of the resumption of distributions.”

On September 28, 2018, the Board declared by consent a monthly distribution of $0.00384 per share. This distribution, year to date, reflects a reduced 2.23% annualized distribution rate based on the current offering price of $8.75.

According to filings with the SEC, on 08/17/2018, the company announced that they will be unable to file their next 10-Q by the deadline required by the SEC.

BDC Risks

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 unscrupulous 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 are concerned about your investment in VII Peaks Co-Optivist Income BDC II and would like to discuss your options, 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.