FS Energy & Power Fund – Recovery of Investment Losses – Updated 2/20/19
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FS Energy & Power Fund is a Business Development Company (BDC) that invests primarily in the debt and income-producing equity securities of private companies involved in the vast domestic infrastructure required to locate, produce and deliver energy and power.
On February 20, 2019, Central Trade and Transfer, a secondary market for private placements, sold shares of FS Energy & Power Fund for $5.21 per Share. The original offering price was $10.00 per share.
Unfortunately for investors, you cannot sell your shares of FS Energy & Power Fund on the market. It is an illiquid investment that has not stated when it will liquidate. FS Energy and Power has proposed listing its shares on a stock exchange but there is no guarantee that the proposal will pass or that shares would trade higher than our offer price if listed.
Are BDCs a suitable investment for you?
Business Development Companies (BDCs) are complicated and often risky investments which should only be sold to high-net worth and sophisticated investors.
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling high-risk BDCs, like FS Energy & Power Fund, to investors.
Notwithstanding the risks of investing in BDCs, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation. Similar to a non-traded REIT, brokerage firms generally make between 7-10% for selling a BDC, which is far in excess of the typical commission for more traditional investment types.
If you are concerned about your investment in FS Energy & Power Fund, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
To speak with a securities attorney regarding your investment in a FS Energy & Power Fund, please call The White Law Group at (888)637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, visit the firm’s website at https://whitesecuritieslaw.com.
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