FSEP’s NAV continues to decline after Suspension of SRP
Invest in FS Energy & Power Fund (FSEP)? The White Law Group may be able to help you recover your financial losses. The White Law Group continues to investigate the liability that brokerage firms may have for unsuitably recommending FS Energy & Power Fund to investors.
FSEP (FS Energy & Power Fund) is a publicly registered, non-traded business development company sponsored by FS Investments. According to the company’s web page, market events in 2020 have impacted the financial markets and significantly disrupted U.S. and global economies, including energy markets.
The fund focuses primarily on investing in the debt and income-oriented equity securities of privately held U.S. companies in the energy and power industry. FSEP’s investment objectives are to “generate current income and long-term capital appreciation,” according to its website.
NAV and DRP Continues Decline
Unfortunately for investors, FSEP’s NAV per share is currently $3.57 per share as of Sept 30, 2021. Shares were originally offered for $10.00 per share. According to the company, the purpose of these decreases is to ensure that the Company does not issue shares under the DRP at a price per share that was more than 2.5% greater than the NAV Per Share.
According to Central Trade and Transfer, a secondary market for alternative investments, shares of FSEP were recently sold for just $1.86 per share, indicating significant losses for investors.
Suspension of Redemptions
According to its website on August 27, 2021, FSEP continues to suspend the share repurchase program, citing market events in 2020–2021 impacting “the financial markets and significantly disrupted U.S. and global economies, including energy markets.”
Potential Lawsuits to Recover Financial Losses
The White Law Group has represented numerous investors in claims against their brokerage firms to recover losses in alternative investments such as FSEP. For more information on the firm’s investigations, please see the following:
FSKR – FS Investments Lawsuits Update 2021
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The trouble with alternative investment products like FSEP is that they involve a high degree of risk. They are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds. Another issue is illiquidity – it may be difficult to find a buyer when you are ready to sell the investment, and when you do, it may be at a loss.
Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations. They must ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
If you have suffered investment losses in FS Energy & Power Fund (FSEP), the White Law Group may be able to help you. Please call the offices 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 Seattle, Washington.
For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.
