Business Development Corporation of America (BDCA) Losses?

Soreide Law Group is investigating possible claims on behalf of investors who purchased Business Development Corporation of America (BDCA). BDCA is a New York, New York based business development company making debt investments in middle-market companies.

Soreide Law Investigating (BDCA) Losses?

Business development companies (BDCs) are entities investing in small to medium sized companies. Their objective is to aid those small and middle sized companies in the companies’ earlier stages. BDCs are often public companies that have issued shares trading on stock exchanges.
BDCs give investors a chance to obtain equity and debt investment exposure; however, non-traded business development companies pose a risk to investors. Because the company is not traded, there is no exchange where shares could be traded. Therefore, non-traded business development companies are not typically designed for investors who require liquidity.
Business Development Corporation of America is not traded, and illiquidity has posed an issue for BDCA investors in the past. For instance, BDCA put a share repurchase program in place in 2016. Unfortunately, there were substantially more shares submitted for repurchase than BDCA actually purchased. Further, investors have only been offered a chance to sell their investments twice each year through the repurchase program.
BDCA claims that its goal is to protect and preserve capital, generate capital appreciation and provide monthly cash distributions. BDCA mainly invests in senior secured loans, unsecured loans, mezzanine loans, and private middle-market companies. The manager, BDCA Adviser, LLC, is affiliated with Benefit Street Partners, L.L.C. – an alternative asset management company with more than $24,000,000,000.00 in assets under management.
Benefit Street Partners issued a Second Quarter 2018 Investor Presentation. It reported that BDCA’s net asset value (NAV) was $8.20 per share as of June 30, 2018. BDCA’s NAV was $8.30 as of December 31, 2017.

Have you been inappropriately placed in business development companies or other alternative investments by a broker or financial advisor? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your losses. Soreide Law Group represents clients nationwide and only charges a fee upon recovery of losses.