GPB Capital Holdings, LLC (“GPB”) just delivered a significant blow to investors, marking down the value of various GPB Capital funds. Last week, GPB Capital informed its investors that it was marking down the Fair Market Value (“FMV”) of all of its Funds. Not surprisingly, the FMV of two of its Funds dropped nearly seventy percent (70%), and the other Funds dropped significantly as well. GPB Capital’s Funds invest in automotive dealerships, waste management, information technology, and other business sectors.
GPB Capital With History of Setbacks and Problems
GPB Capital is an alternative asset management firm that was formed in 2013 and, according to InvestmentNews, “raised $1.8 billion from accredited investors through private placement funds, which invest in auto dealerships and the waste management industry.” It is believed that broker-dealers who sold GPB funds are claimed to have earned over $100M in commissions. Investors in these products have suffered investment losses due to their investment in GPB funds marketed as a safe and with minimal risks. In August 2018, GPB Capital announced that it was suspending the sale of its funds to conduct an internal accounting review. GPB Capital suspended all redemptions of its funds, and its auditors resigned in late 2018. GPB Capital also has failed to make required filings with the Securities and Exchange Commission, triggering further concerns with investors.
The company has continued to suffer setback after setback since that time. Just recently, Fidelity’s National Financial Services was considering whether to remove the private placements from their platform.
GPB Capital’s Network of Investment Sales Spans the Entire U.S.
According to public filings, there were brokerage firms around the country who sold, or who disclosed that they might be selling GPB Capital-issued funds. If you invested in a GPB fund through any brokerage firm, you might be able to pursue claims against that securities broker-dealer in a Financial Industry Regulatory Authority (“FINRA”) arbitration. In addition to others, the following firms were disclosed in public filings as being authorized to sell GPB funds: Aegis Capital, Arete Wealth Management, Ascendant Alternative, Geneos Wealth, Money Concepts, Hightower Securities, and Royal Alliance. For a complete list, please visit, levinlawpa.com/gpb-capital/.
Unknown Funds Value Leaving Investors Worried About Additional Losses
The true and current value of GPB funds is yet to be revealed, leaving investors to believe that they will suffer meaningful additional losses in their GPB Funds. All recent reports of losses are based on an estimated value for the 2018 funds and likely do not reflect the actual market value of the Funds.
Levin Law Has Direct GPB Investment Fraud Experience Ready to Work for You
Levin Law has filed multiple FINRA arbitration claims seeking to recover millions of dollars on behalf of investors throughout the United States. If you are interested in recovering damages suffered from your investment in GPB Capital funds, contact for a free consultation. Additionally, you can email Brian Levin or fill out the online contact form.
Contact Levin Law for a Free Case Evaluation to Determine Whether you can Recoup Your GPB Investment Losses