Sierra Income Corporation Suspends Repurchasing

Sierra Income Corporation is a non-traded business development company (BDC). Recently it suspended share repurchases and repurchases in the event of death or disability. Previously Sierra Income Corporation announced a review process to evaluate strategic alternatives for the company, which could possibly mean a sale of the company’s assets, a merger, or listing on a national securities exchange.
According to Sierra Income Corporation’s website, they are a non-traded business development company that invests primarily in first lien senior secured debt, second lien secured debt and, to a lesser extent, subordinated debt of middle market companies in a broad range of industries with annual revenue between $50 million and $1 billion. Sierra’s investment objective, according to their website, is to generate current income, and to a lesser extent, long-term capital appreciation. Sierra is externally managed by SIC Advisors LLC. Sierra Income Corporation was founded in 2012 and is based in New York, New York.
It has been reported that fees and commissions charged to the client could have been up to 10 % for the non-traded, Sierra Income Corporation. Clients may not have been made aware of these fees nor the high-risk often associated with these non-traded business development companies (BDCs). The non-traded BDCs are also illiquid causing even more risk to investors.
For the low-risk to moderate investors these types of investments could be extremely volatile creating devastating losses to irreplaceable savings, especially for retirees.  Many of these clients require liquidity and a guaranteed income. It is the responsibility of the broker/dealer and financial advisors to make sure the client is aware of the risks involved before purchasing these high-risk products.
If your broker/dealer or financial advisor recommended investing in Sierra Income Corporation and you have suffered losses, contact Soreide Law Group and speak at no cost 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.