Third Seven Capital Pet Assistant Lawsuit and SVP Investor Claims
The White Law Group is investigating potential claims involving Third Seven Capital Pet Assistant, a series of Third Seven Capital SPV Master Series LLC, on behalf of investors who bought it through Third Seven Capital brokers. Here is what the Pet Assistant series’ Form D shows and what your options may be, including a FINRA arbitration claim or lawsuit.
What Is Third Seven Capital Pet Assistant?
Third Seven Capital Pet Assistant is one series of Third Seven Capital SPV Master Series LLC, a Delaware company formed in 2022. A master series LLC creates separate series for separate deals. Each series is its own pool of investor money, usually built to buy into a single private company. The Form D does not name the company or asset the Pet Assistant series invests in.
Third Seven Capital Pet Assistant Offering Terms
According to the amended Form D filed in June 2023, the offering terms are:
- Exemption: Rule 506(b) of Regulation D, with an exclusion under Section 3(c)(1) of the Investment Company Act
- Securities offered: pooled investment fund interests
- Total offering: $815,000, fully sold
- Number of investors: 14
- Minimum investment: $10,000
- Date of first sale: January 19, 2023
The filing reports no sales commissions. It estimates $8,150, about 1% of the raise, as a one-time cost for fund organizational and operating expenses and fees paid to the manager.
Broker Due Diligence Obligations
A brokerage firm must investigate a private placement before recommending it. For a single-company SPV, that includes understanding the underlying business, how the series bought in and what investors will pay. The broker must also make sure the investment fits the customer’s finances and risk tolerance.
Risks of SPV Private Placements
An SPV puts all of its money into one company, so investors have no diversification inside the fund. These interests cannot be sold on a public market. Investors may wait years for any return, and they depend on the manager for information about how the investment is doing.
Recovering Losses in Third Seven Capital Pet Assistant
If a broker recommended this series without explaining the risks, or it did not fit your situation, you may be able to recover your losses. Brokerage firms are responsible for their brokers’ recommendations. These claims are usually brought through FINRA arbitration.
Contact The White Law Group
The White Law Group is a national securities fraud and investment loss recovery law firm with offices in Chicago and Seattle. If you invested in Third Seven Capital Pet Assistant or another Third Seven Capital SPV series, call (888) 637-5510 for a free consultation, or contact us online.
Frequently Asked Questions
How do I file a claim to recover money I invested in Third Seven Capital Pet Assistant?
You file a claim against the brokerage firm whose broker recommended the investment. Most brokerage account agreements typically include a pre-dispute arbitration clause, so these claims generally go to FINRA arbitration instead of court. Many investors don’t know that clause exists, but arbitration can still lead to a money recovery.
Why are single-company SPV investments risky?
All of the money rides on one private company, so if that company struggles, the whole investment suffers. SPVs also offer little information and no easy way to sell. That combination makes them unsuitable for many retail investors.
Can Third Seven Capital be held responsible for my losses?
A brokerage firm can be liable if its broker made an unsuitable recommendation or the firm failed to vet the product. Firms also have a duty to supervise their brokers. If the firm or an affiliate also managed the investment, that conflict may be part of the claim.
