Prospect Sustainable Income Fund Inc. – Investors may have Claims 

Investor Alert: Prospect Sustainable Income Fund Inc.

Are you concerned about your investment in Prospect Sustainable Income Fund Inc. at the recommendation of your financial advisor? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.  

Prospect Sustainable Income Fund Inc. is a publicly registered, non-traded business development company (BDC). Prospect Flexible Income Fund Inc., a non-traded business development company formerly known as TP Flexible Income Fund Inc., has changed its name to Prospect Sustainable Income Fund Inc. 

A Business Development Company (BDC) is a company that invests in small and mid-sized businesses. Investors can buy shares in a BDC, and the money from their investments is used to fund the businesses. In turn, investors can profit from dividends paid on their investments, or, possibly, the sale of their shares.  

Non-traded BDCs are high-risk investments. They operate much the same way as non-traded REITs (Real Estate Investment Trusts), with high commissions, and a lack of liquidity. 

BDCs pool investor money and use those funds as capital to invest in various businesses. The goal of a BDC is to invest in small and medium-sized businesses and help sustain and develop growth in those underlying businesses. When those businesses are profitable, the BDC can be a strong investment. Additionally, certain BDCs offer a desirable tax structure for investors.   

However, “middle-market loans” are basically highly leveraged loans to private equity backed companies, and come with a large credit risk. When rising interest rates and inflation lead to a recessionary event BDCs, such as Prospect Sustainable Income Fund Inc., may take a big hit.    

The White Law Group continues to investigate potential claims against the broker dealers that sold high risk investments, like Prospect Sustainable Income Fund Inc.to investors.  

To learn more about BDCs, please see: Business Development Companies BDCs – the good, the bad, and… 

Recovery of Investment Losses

Broker dealers are required to perform adequate due diligence on any investment they recommend. They should also ensure that all recommendations are suitable for the investor. Recommendations should be appropriate in light of the investor’s age, risk tolerance, net worth, and investment experience.  

Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses in a FINRA arbitration claim.  

If you have suffered losses investing in Prospect Sustainable Income Fund Inc., the securities attorneys at The White Law Group may be able to help you. Please call The White Law Group at 1-888-637-5510 for a free consultation.  

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and
Seattle, Washington. To learn more about The White Law Group please visit www.whitesecuritieslaw.com.