Priority Income Fund: Liquidity Issues and Declining NAV
The White Law Group continues to investigate potential securities fraud claims involving broker-dealers who may have improperly recommended Priority Income Fund to investors.
Priority Income Fund is a speculative, high-risk, illiquid, closed-end mutual fund and is not suitable for every investor.
September 2025 Update: Charter Amendment for Public Listing
Priority Income Fund recently filed its definitive proxy statement asking stockholders to amend its charter in preparation for a potential listing of its common shares on a national securities exchange.
According to the filing, the amended charter would restrict stockholders’ ability to transfer or sell shares for the 270 days following a listing event. These restrictions are intended to mitigate potential stock price volatility and include:
- First 90 days: Only up to 25% of common shares may be transferred or sold without board approval.
- First 180 days: An additional 25% may be transferred or sold.
- First 270 days: Another 25% may be transferred or sold.
The fund has stated that a listing is anticipated prior to December 31, 2026, subject to market conditions and final board approval.
May 2025 Share Repurchase & Suspension of Offering
In May 2025, the fund completed its quarterly share repurchase program, repurchasing approximately 60% of shares tendered by each shareholder at a net asset value of $7.17 per share as of April 30, 2025. The program allows for the repurchase of 2.5% of outstanding shares quarterly, though demand far exceeded the cap, with about 4% of shares tendered.
Shortly afterward, Priority Income Fund suspended its common share offering on May 1, 2025, and engaged Lucid Capital Markets LLC as an adviser to assist with preparations for a listing.
Complex, High-Risk Investment Strategy
Priority Income Fund invests at least 80% of its total assets in securitized pools of senior secured loans and/or invests in senior secured loans in the primary or secondary markets, according to the fund’s prospectus. Its investment strategy also includes:
- Investments in securities issued by foreign entities.
- Equity and junior tranches of collateralized loan obligations (CLOs), which are riskier than direct investments in underlying companies.
- CLOs generally hold no significant assets outside of the underlying senior secured loans.
Liquidity Issues and Risk Warnings
The company revised its liquidity strategy, changing its position from pursuing a liquidity event upon completion of the offering to stating it “may, but is not obligated to,” pursue a liquidity event for shareholders.
The fund discloses multiple pages of risk factors, warning that:
- There is no obligation to complete a liquidity event.
- Shares are not listed on any securities exchange.
- Liquidity is extremely limited.
- Distributions are not guaranteed.
Declining Net Asset Value (NAV)
Priority Income Fund has experienced a continued decline in NAV since it was originally offered at $15.00 per share:
- $12.64 per share as of November 30, 2021
- $11.12 per share as of October 31, 2022
- $7.17 per share as of April 30, 2025
About Priority Income Fund
Launched in 2013, Priority Income Fund focuses primarily on investments in CLO securities. The fund reported over $900 million in total assets as of December 31, 2024.
Filing a Complaint Against Your Brokerage Firm
Brokerage firms must perform due diligence and ensure that any investment recommendation is suitable based on an investor’s:
- Age
- Financial situation
- Risk tolerance
- Investment experience
If your financial advisor failed to properly disclose risks or recommended unsuitable investments, you may have grounds for a FINRA arbitration claim to recover investment losses.
Free Consultation
If you are concerned about an investment in Priority Income Fund, call The White Law Group at 888-637-5510 for a free consultation with a securities attorney.
The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago, Illinois, and Seattle, Washington.
Tags: Priority Income Fund Last modified: September 22, 2025
