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Written by 3:13 pm Blog, Investment Loss Recovery

HPS Corporate Lending Fund: Securities Investigation

HPS Corporate Lending Fund  Securities Investigation, featured by top securities fraud attorneys, the White Law Group

Concerned about your investment in HPS Corporate Lending Fund? 

The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended HPS Corporate Lending Fund to investors. 

According to filings with the SEC, HPS Corporate Lending Fund, a perpetual-life non-traded business development company sponsored by HPS Investment Partners. 

BDCs operate much in the same way as non-traded REITs (Real Estate Investment Trusts). 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 HPS Corporate Lending Fund., may take a big hit. 

Potential Lawsuits to Recover Financial Losses  

The White Law Group continues to investigate potential claims against the broker dealers that sold high risk investments to investors. The high commission structure of these products leads to the possibility that unscrupulous financial advisors will push these products unsuitably to maximize their own commissions.  

Broker dealers are required to perform adequate due diligence on any investment they recommend and to 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.  

Free Consultation

If you have suffered losses in HPS Corporate Lending Fund and would like to speak to a securities attorney about the potential to recover your investment losses, 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.

  

 

Tags: , , , , , Last modified: March 26, 2024