oreide Law Group has been contacted by investors regarding losses due to the recommendation of their brokers to purchase, FS KKR Capital Corp. II (FSKR).
Four non-traded business development companies (BCDs), FS Investment Corp II (FSIC II), FS Investment Corp III (FSIC III), FS Investment Corp IV (FSIC IV), and Corporate Capital Trust (CCTII) merged into the Franklin Square KKR Capital II Fund (NYSE:FSKR) on December 18, 2019.
According to Yahoo Finance, FS KKR Capital Corp. II (FSKR), formerly known as FS Investment Corp II, is a business development company specializing in investments in floating rate, senior secured loans-first lien and second line, senior secured bonds, subordinated debt, collateralized securities, corporate bonds, debt securities, equity such as warrants or options in middle market private companies. FSKR does not intend to invest to any significant degree in start-up companies, turnaround situations or companies with speculative business plans. It seeks to invest in various sectors such as consumer services, energy, capital goods, software and services, telecommunication services, consumer durables and apparel, diversified financials, materials, automobiles and components, commercial and professional services, media, technology hardware and equipment, health care equipment and services, insurance, retailing, transportation, pharmaceuticals, biotechnology, and life sciences, food and staples retailing, food, beverage, and tobacco, household and personal products, real estate, and utilities. The fund seeks to invest in private companies based in the United States. It also invests in non-U.S. securities, which may include securities denominated in U.S. dollars or in non-U.S. currencies. FSKR purchases interests in loans through secondary market transactions in the over-the-counter market for institutional loans or directly from our target companies. It also purchases minority interests in the form of common or preferred equity in target companies, either in conjunction with one of its debt investments or through a co-investment with a financial sponsor, such as an institutional investor or private equity firm. It may have board representation or board observation rights in its portfolio companies.
FSKR was listed on the NYSE on June 17, 2020. FSKR announced that Keefe, J.P. Morgan, Morgan Stanley, Bruyette & Woods, A Stifel Company, and SunTrust Robinson Humphrey are serving as the lead advisors of FSKR. Due to the IPO, FSKR’s investors are liquidating their investments in the previously non-traded BDCs lower than the initial offering price. Broker/dealers have an obligation to their clients to make sure they understand BDCs before they make the purchase and the risks associated with this type of investment.
If you’ve experienced losses through the recommendation of your broker/dealer in FS KKR Capital Corp. II (FSKR), contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your financial losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group works on a contingency fee and represents our clients nationwide before FINRA.