GPB Automotive Portfolio LP to Sell Assets to Group 1 Automotive
Have you suffered losses investing in GPB Automotive Portfolio LP? If so the securities attorneys at the White Law Group may be able to help you.
The White Law Group is continuing its investigation into the liability broker dealers may have for improperly recommending GPB Automotive Portfolio LP to investors. The firm is currently representing GPB investors in claims against their brokerage firms.
GPB Automotive Portfolio LP is a private placement fund sponsored by GPB Capital Holdings, LLC, a New York-based global asset management firm. According to the Form D, the company has raised capital from over 6,000 investors and the total offering amount purportedly sold was $622,143,273. Sales commissions and fees paid on the offering are reportedly estimated at close to 9%.
In February of this year, the CEO of a GPB Capital Holdings, and two others were arrested in connection with a massive “Ponzi-like scheme” that allegedly defrauded 17,000 investors across the U.S. out of more than $1.7 billion, according to the U.S. Attorney’s Office for the Eastern District of New York.
The Securities and Exchange Commission and seven state regulators reportedly filed similar charges on February 4. The SEC also reportedly charged GPB Capital with violating the whistleblower protection laws.
The SEC alleges that the “Ponzi-like scheme” continued for more than four years because GPB was able to hide the funds’ financial condition from investors, neglecting to deliver audited financial statements and register two of its funds with the SEC.
GPB Automotive Portfolio, Sells Auto Dealerships to Group 1 Automotive (GPI) for $880 Million
On September 12, 2021, GPB Automotive Portfolio, LP announced that it had reached an agreement to sell its portfolio of auto dealerships to Group 1 Automotive, Inc (NYSE: GPI), for “approximately $880 million in cash”. GPB Auto will reportedly place $45 million in escrow as a contingent reserve for any post-closing indemnifiable losses to the seller for up to 24 months, at the closing of the sale.
The sale includes all real property, vehicles, parts and accessories, goodwill, permits, intellectual property and substantially all contracts, that relate to their automotive dealership and collision center businesses. GPI is a publicly traded automotive retailer based in Houston, TX, with a market capitalization of approximately $3.2 billion.
GPB Auto reported total assets of $1.0 billion as of June 30, 2021. Net of cash, total assets were $870 million. GPB Auto reported total liabilities of $516.7 million, including approximately $145.4 million in outstanding debt. It is unclear what net returns to investors are anticipated to be following the announced automotive portfolio sale to GPI.
Recovery of Investment Losses
The White Law Group continues its investigation into the liability that FINRA-registered broker-dealers may have for recommending GPB offerings to investors.
Aside from the various problems with the company, private placement investments such as GPB Capital offerings are highly complex, high-risk investments. They are only suitable for sophisticated, accredited investors and institutions.
For more information on the firm’s investigation, please see:
If you have suffered losses in GPB Automotive Portfolio LP or another GPB Capital offering, please call the securities attorneys at The White Law Group for a free consultation at 888-637-5510.
These claims are distinct from the class action filed directly against GPB Capital and could be pursued concurrently.
This information is all publicly available and provided to you by The White Law Group.
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. For more information on the firm and its representation of investors, visit https://www.whitesecuritieslaw.com.
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