TriLinc Global Impact Fund: NAV Declines

TriLinc Global Impact Fund: Secondary Sales $1.50 per Share  

Have you suffered losses investing in TriLinc Global Impact Fund, LLC? If so, 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.  

According to a 10-Q Filing, as of September 30, 2023, the Trilinc Global believes that the estimated Net Asset Value (NAV) for each unit class (Class A, Class C, Class I, Class W, Class Y, and Class Z) is approximately $5.74. 

The decrease is attributed to various factors, including the adverse impact of COVID-19 and inflation, according to the company. During the nine months ending September 30, 2023, the company recorded $2,611,916 in net change in unrealized appreciation and $11,114,481 in net realized loss on its investments. The estimated NAV does not include considerations of future distributions or ongoing fees payable after September 30, 2023.

TriLinc Global Impact Fund Fails to File Financials

TriLinc Global Impact Fund  has reportedly failed to file its annual report for the year ending December 31, 2022, or its first quarter report for 2023. On June 26, 2023, the company announced that KPMG had agreed to serve as its independent registered public accounting firm after its former auditors resigned in February of this year, according to an 8-K filing. 

TriLinc, who reported total assets of $338.8 million in its last quarterly report, reportedly raised approximately $361 million in equity proceeds in a blind pool offering between 2013 and 2017, according to its most recent quarterly report in September 2022.   

The company makes “impact investments” in Small and Medium Enterprises, or SMEs. These investments are primarily in developing economies that provide the opportunity to achieve both competitive financial returns and positive measurable impact, according to its prospectus. The investment objectives for the fund are to generate current income, capital preservation and modest capital appreciation.   

Trilinc Global Impact Fund – Secondary Sales Price 

The initial offering price for the units in the primary offering was $10.00 per unit. Unfortunately for investors, the units are currently offered for sale on a secondary market for just $1.50 per unit.  Further, the company’s NAV continues to decline and as of September 30, 2022 was $6.84/per share, according to filings with the SEC.    

According to the prospectus, an investment in Trilinc Global Impact Fund involves a high degree of risk and may be considered speculative.  “The following are some of the risks you will take in investing in our units:  

• This is a “blind pool” offering because we have not identified any investments to acquire with the net proceeds of this offering. You will not be able to evaluate our investments prior to purchasing units. We may change our investment policies without unitholder consent, which could result in investments that are different from those described in this prospectus.  
• We may not achieve investment results that will allow us to make distributions on a monthly basis or at a specified level of cash distributions.  
• If we pay distributions from sources other than our cash flow from operations, we will have less funds available for the investments, and your overall return may be reduced.  
• The units sold in this offering will not be listed on an exchange for the foreseeable future, if ever. Therefore, if you purchase units in this offering, it will be difficult for you to sell your units and, if you are able to sell your units, you will likely sell them at a substantial discount.”  

Is Trilinc Global Impact Fund a Suitable Investment for you?

The White Law Group is investigating potential securities claims involving Trilinc Global Impact Fund. Brokerage firms may be held liable if they unsuitably recommend any investment to their customers.  

The suitability rule is commonly referred to as FINRA Rule 2111, or simply the Suitability Rule. FINRA stands for the Financial Industry Regulatory Authority, which is a self-regulatory organization that oversees brokerage firms and their registered representatives in the United States. FINRA Rule 2111 sets forth the obligations and standards that brokers and financial advisors must follow when recommending investments to their clients.  

Brokerage firms have a responsibility to adequately disclose all risks before selling any investment and must consider suitability factors such as age, financial needs, and risk tolerance to name a few. Firms that do not perform adequate due diligence on an investment or demonstrate a breach of fiduciary duty can be held accountable for losses incurred through FINRA arbitration.  

Hiring a FINRA Attorney for Investment Loss Recovery 

If you have suffered losses due to an unsuitable investment recommendation, you may be able to file a FINRA claim to recover your losses. The experienced FINRA attorneys at the White Law Group can help you with the arbitration process including evaluating the merits of your claim and determining whether you have a strong case for arbitration.            

After drafting a statement of claim that accurately reflects the allegations of fraud and the damages you are seeking, our attorneys will represent you at the arbitration hearing, present evidence and make arguments on your behalf. They may be able to negotiate a settlement for you before going to arbitration.    

If you are concerned about your investment in Trilinc Global Impact Fund, The White Law Group may be able to help. Please call us 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 Seattle, Washington.  We represent investors in all 50 states. Our attorneys have recovered millions of dollars from many brokerage firms in the past.            

For more information on The White Law Group, and its representation of investors, please visit WhiteSecuritiesLaw.com.