Soreide Law Group is reviewing potential investor claims of unsuitable sales and misrepresentations by financial advisors relating to FS KKR Capital Corp II (NYSE: FSKR). Here’s what you need to know.
Who Is FS KKR Capital Corp II?
Evidently, FS KKR Capital Corp II is a BDC created through FS investment Corporation II, FS Investment Corporation III, FS Investment Corporation IV and Corporate Capital Trust II in 2019. Mainly, the company aims to deliver credit solutions to middle market United States companies. Its investments include senior secured debt and some subordinated debt of private middle market United States companies. Apparently, FS KKR Capital Corp II has 179 entities in its portfolio as of March 31, 2020, with 80 percent of the company invested in senior secured debt.
FSKR Begins Trading On NYSE After 4-1 Reverse Stock Split
Evidently, on June 19, 2020, FS KKR Capital Corp II started trading on NYSE under ticker symbol: FSKR. As of June 30, 2019, shares of FSKR equaled $12.87. Notably, the company enacted a 4-to-1 reverse stock split on June 10, 2020. Apparently, its outstanding shares dropped from 691,200,000 to 172,900,000 as a result. Not only that, but FS KKR Capital Corp II was reportedly targeted by Mackenzie Capital Partners LP who made a tender offer to buy the company’s shares for as little as $1.50 per share. It seems that these are indicators of the company’s financial problems.
Suitability, Misrepresentation Concerns
It is possible that financial advisors provided bad investment advice and sold FS KKR Capital Corp II investments without considering investors’ objectives, risk tolerances and needs. Not only that, but some financial advisors could have downplayed or even omitted risks of these alternative investments in order to induce sales. In particular, FS KKR Capital Corp II sales reportedly pay as much as ten percent commissions to brokers which potentially incentivizes them to sell these products to vulnerable investors. Moreover, financial advisors and their firms could have failed to perform due diligence before recommending investments such as FS KKR Capital Corp II.
Losses From Investing In FS KKR Capital Corp II?
Did your securities broker or financial advisor recommend FS KKR Capital Corp II? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have suffered losses due to misconduct of securities brokers and financial advisors.