GPB Automotive Portfolio LP – Securities Investigation
The White Law Group continues its investigation involving broker dealers who may have improperly recommended GPB Automotive Portfolio LP to investors.
According to its website, GPB Capital Holdings is a New York-based alternative asset management firm focusing on acquiring income-producing private companies.
In August, the company allegedly missed an April 30 deadline to file financial statements with the regulator for two of its largest funds, GPB Holdings II and GPB Automotive Portfolio, which combined have close to $1.3 billion in investor capital. Since then, the company has reportedly put a halt to sales of the funds, and instead is reportedly focusing on straightening out their accounting and financials.
Private placements, such as GPB Automotive Portfolio, are a means for companies to raise capital through the sale of equity or debt securities without having to register their securities with the SEC. These investments high risk and complex; they are only suitable for high net worth, sophisticated investors.
Lack of liquidity is often a problem with private placements. Investors may have trouble finding a buyer, and can suffer significant losses on the sale.
According to Central Trade & Transfer, a secondary market for private placements, shares of GPB Automotive Portfolio LP are currently listed at $32,500 for 2.6882 units. This may be at a significant loss to investors.
Update on May 9, 2019 – GPB Capital Holdings
According to an article in Investment News on May 2, 2019, GPB Capital Holdings has shown no signs of filing financials a year after stating its intention to take a break in raising money while it straightens out the accounting and financial statements of two of its existing funds.
What’s the hold up now? According to Investment News, “The company won’t say, but keep in mind that GPB’s CEO and lead partner, David Gentile, is a CPA. That means even the accountant isn’t doing the accounting at GPB.” The question is, what is the real value of these GPB investments?
Free Consultation with a Securities Attorney
Broker dealers are required to perform adequate due diligence on any investment they recommend. They must 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 private placement investments, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.
If you are concerned about your investment in GPB Automotive Portfolio LP or another GPB Capital offering 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 is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.