Investors in GPB Holdings LP may have claims.
The White Law Group continues its investigation involving broker dealers who may have improperly recommended GPB Holdings LP to investors.
GPB Capital is a New York-based alternative asset management firm focusing on acquiring income-producing private companies. According to industry sources, GPB raised between $600 million to $800 million from investors through sales of reps at independent contractor broker-dealers.
According to its website, the company claims it has raised $1.3 billion and owns more than 100 companies in its various portfolios. It appears that brokers collect a 7% commission for selling these high-yield Regulation D private placements.
After allegedly missing deadlines to file financial statements with the SEC for two of its largest funds in April, GPB Capital has reportedly stopped sales of the funds, and instead is reportedly focusing on straightening out their accounting and financials.
According to reports, the company is also suspending redemptions of funds until the audited financial statements have been released and public filings are completed.
Lack of liquidity is often problematic 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 Holdings LP are currently listed at $30,000 for .5376 unit. This may be at a significant loss to investors.
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 Holdings 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, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.