Mackenzie Realty Capital – Investigating Potential Claims
Are you concerned about your investment in Mackenzie Realty Capital? 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.
Mackenzie Realty Capital, Inc. is an externally managed non-diversified company that has elected to be treated as a business development company (BDC). The company and its affiliates are reportedly in the business of purchasing illiquid real estate securities, both in open market transactions and by means of tender offers.
According to recent filings with the SEC, the board of MacKenzie Realty Capital, has approved the suspension of the company’s share repurchase program (SRP), effective immediately. The board made no charges to the company’s dividend reinvestment program.
The company says that due to market disruptions from the Covid-19 global pandemic the value of assets “owned and sought by the company” have declined.
The board has reportedly determined that under the circumstances, the company and its stockholders are “best served by retention of cash, thereby allowing the company to capitalize on opportunities to acquire assets at attractive prices.”
The Risks of Investing in BDCs
Business Development Companies such as Mackenzie Realty Capital, operate much like non-traded 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 Mackenzie Realty Capital.
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 Mackenzie Realty Capital 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, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. The firm represents investors in FINRA arbitration claims throughout the country. For more information on the firm, visit https://www.whitesecuritieslaw.com.