According to a recent article in InvestmentNews, financial advisors and broker/dealers who sold $1.5 billion of the high-risk private placements offered by GPB Capital Holdings should be prepared for the worst.
Last year, GPB Capital Holdings was supposed to file a "Form 10" with the Securities and Exchange Commission (SEC) and begin making financial disclosures public for two of their largest funds. The funds are private and are not listed or traded on an exchange, but they have over $10 million in assets and 750 or more shareholders, so they are required to file a "Form 10" with the SEC.
GPB Capital Holdings claims it is performing an audit of its assets. This could cause a delay in its filings with the SEC by three or even six months, but not making appropriate filings with the SEC in more than a year is a red flag for GPB investors and their advisors.
The two funds in question are GPB Automotive Portfolio which raised $622.1 million and GPB Holdings II which raised $645.8 million. They both have over 6,000 investors. These statistics were according to filings with the SEC that contained very little financial information which would give any indication regarding their performance. Together, according to InvestmentNews, the two funds have paid brokers $100.1 million in commissions with a rate of 7.9% and as many as 60 broker/dealers have sold the funds.
Primarily, GPB Capital Holdings invests in auto dealerships and waste management. They did not register the funds by the April 30, 2018 deadline and currently have no date when annual reports for the two funds will be filed with the SEC. The advisors and clients who purchased the funds for their high yields, are not being made aware of basic financial information about the funds.
Soreide Law Group is investigating the high-risk, unsuitability, and commissions associated with GPB Capital Holdings and the following funds:
GPB Holdings LP
GPB Holdings II
GPB Holdings III
GPB Automotive Portfolio LP
GPB Waste Management, LP
GPB NYC Development LP
If your broker/dealer recommended investing in the high-risk private placements associated with GPB Capital Holdings, contact Soreide Law Group and speak to an experienced securities lawyer regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group works on a contingency fee and represents our clients nationwide before FINRA.
Soreide Law Group is investigating potential investor claims involving Blue Owl Capital Corporation (NYSE: OBDC), including whether brokers and financial advisors properly explained the risks surrounding this publicly traded business development company and its related private credit platform. OBDC invests primarily in loans to middle-market companies and is often marketed as an income-generating investment. However, […]
Investors potentially experienced sales practice violations by securities broker Mark Perry Kissinger [CRD: 4546631, Frisco, Texas], given the disclosures on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Kissinger worked for NYLIFE Securities LLC since November 27, 2018, and Eagle Strategies LLC since March 15, 2023. Read on for a better understanding about the disclosures involving this […]
Investors have reportedly disputed the sales practices of securities broker Robert Steven Wilkinson [CRD: 1180321, Oakland, California], according to publicly available information found on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Wilkinson worked for Western International Securities Inc. from November 26, 2013, to June 5, 2025, and later registered with LPL Financial LLC beginning June 5, […]
Phone:
Fax: 1-954-760-6553
Email: info@securitieslawyer.com