Priority Income Fund Complaints, NAV Losses & Tender Offer Update
Priority Income Fund has reopened its quarterly share repurchase offer, this time at a net asset value near a multiyear low. The White Law Group is investigating potential FINRA arbitration claims on behalf of investors who purchased Priority Income Fund and have been unable to recover their principal.
If you are concerned about your investment in Priority Income Fund, our FINRA arbitration attorneys may be able to help you recover your losses. Call (888) 637-5510 for a free consultation, or contact us online.
New Tender Offer Opens as NAV Hits Multiyear Low
Priority Income Fund is offering to repurchase up to 1,621,557 shares of its common stock, about 2.5% of the roughly 63.7 million shares outstanding as of September 18, 2026. The purchase price will be based on net asset value per share as of October 31, 2026. NAV stood at $3.15 per share as of July 31, 2026, down from $10.85 in June 2024, a decline of roughly 71%. The offer expires at 4 p.m. ET on October 30, 2026, unless extended. If tenders exceed the share cap, Priority Income will prorate the repurchase, with priority given to holders of fewer than 100 shares who tender their full position.
Prior Tender Offer Left Most Investors Unable to Exit
The new offer follows a repurchase completed this summer that shows how hard it has become for investors to get out of Priority Income Fund at NAV. Shareholders tendered more than 10.1 million shares against the fund’s 1,550,812-share cap, and the fund purchased the full cap amount for roughly $4.9 million, a proration rate of just 15.23%, the lowest in at least two years. By comparison, an August 2025 tender returned about 43% of tendered shares, and an April 2025 tender returned about 60%. Each cycle, fewer shareholders who want out are actually getting out.
Net Asset Value Has Fallen More Than 70%
Priority Income Fund shares were originally offered at $15.00. Reported NAV per share has fallen sharply since:
- $12.64 as of November 30, 2021
- $10.85 as of June 30, 2024
- $7.17 as of April 30, 2025
- $6.14 as of June 30, 2025
- $4.48 as of December 31, 2025
- $3.61 as of March 31, 2026
- $3.70 as of April 30, 2026
- $3.15 as of July 31, 2026
Priority Income Fund has attributed the decline to elevated defaults and distressed exchanges in the broadly syndicated loan market, along with falling loan asset spreads. According to trade press reports, the fund realized $178 million in investment losses in the fiscal year ended June 30, 2025, and another $82.2 million in the six months ended December 31, 2025. Total assets reportedly fell to $479 million by the end of 2025, down from more than $900 million a year earlier.
High Distributions Despite a Falling NAV
Priority Income Fund has kept paying monthly cash distributions through the decline. As of December 31, 2025, the fund reported an annualized distribution rate of 23.44% of NAV. Fiscal 2025 distributions reportedly included $71.5 million characterized as return of capital, against just $11.6 million from earnings. A high distribution rate measured against a falling NAV can look attractive on a statement even as the underlying value of an investor’s shares keeps shrinking.
NYSE Listing Timeline Still Uncertain
Priority Income Fund has said it intends to list its common shares on the New York Stock Exchange before December 31, 2026. Shareholders approved tiered transfer restrictions at the fund’s December 2025 annual meeting, capping sales at 25% of a holder’s shares in each of the first three 90-day windows after any listing, so only 75% of shares could be sold in the first 270 days even after a listing. As of December 2025, the company said trading levels for comparable listed funds relative to NAV did not yet justify moving forward, and it has not issued a public update on the timeline since. The fund’s Series J Term Preferred Stock was delisted from the NYSE in April 2026 after Priority Income Fund announced it would redeem those shares. Non-traded closed-end funds that convert to an exchange listing have historically traded at a discount to NAV in the early period after listing, so investors who cannot exit through a tender offer beforehand may find that a future listing does not restore what they have lost.
A Complex, High-Risk CLO Strategy
Priority Income Fund invests at least 80% of its total assets in securitized pools of senior secured loans, according to the fund’s prospectus, including equity and junior tranches of collateralized loan obligations. CLO equity and junior debt absorb losses first when the underlying loans default, making them riskier than direct loan investments. As of its fiscal year ended June 30, 2025, the fund reportedly held 149 CLO equity positions and 30 CLO debt investments backed by more than 2,000 senior secured loans, many rated below investment grade.
Investors Are Allegedly Filing Claims Over Priority Income Fund Sales
According to press reports, investors have filed FINRA arbitration claims against the brokerage firms and advisers who sold them Priority Income Fund, alleging the investment was unsuitable for retirees and conservative investors who needed liquid, income-producing accounts. These are allegations only, and no broker-dealer has been found liable in connection with the sale of Priority Income Fund. The White Law Group is investigating whether the broker-dealers and registered investment advisers who sold the fund performed adequate due diligence and made suitable recommendations.
Contact The White Law Group
The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago and Seattle. If you are concerned about your investment in Priority Income Fund, our FINRA arbitration attorneys may be able to help you recover your losses. Call (888) 637-5510 for a free consultation, or contact us online.
Frequently Asked Questions
How do I file a claim to recover money I invested in Priority Income Fund?
Most claims against a brokerage firm go through FINRA arbitration rather than court. That’s because most brokerage account agreements typically include a pre-dispute arbitration clause, something many investors don’t know about until they look into filing a claim. Arbitration can still result in a monetary recovery, and our attorneys can review your account statements for free.
Why might Priority Income Fund have been unsuitable for me?
A recommendation is unsuitable when it doesn’t match an investor’s age, income needs, risk tolerance, or ability to have money tied up for years. Priority Income Fund is an illiquid, leveraged CLO investment, and it may not have been appropriate for retirees or investors who needed regular access to their principal.
Can my brokerage firm be held responsible even if it didn’t make the decision to invest?
Yes. A firm can be liable if it failed to supervise the broker who recommended the investment. Firms are required to review products before letting representatives sell them and to monitor whether each recommendation fits the client’s profile.
