Did your broker recommend an investment in Sierra Income Corp.?

The White Law Group continues to investigate potential securities claims involving broker dealers who may have improperly recommended Sierra Income Corp. to investors.

Sierra Income Corp. is a publicly registered non-traded business development company (BDC) that invests primarily in first lien senior secured debt, second lien secured debt and, subordinated debt of middle market companies in a broad range of industries with annual revenue between $50 million and $1 billion.

On October 23, 2020 the board opted to reinstate the monthly distributions on the company’s shares after suspending them last April during the  economic disruption of the COVID-19 global pandemic.

The Board of Directors declared a series of monthly distributions for October, November and December 2020 of $0.01 per share.

Unfortunately for investors, the BDC’s net asset value has continued to decline since 2016. As of December 31, 2020, the new NAV is reportedly $5.12 per share, an approximate 50% drop in value from the original price of $10 per share, according to a 10-K filing.

Illiquid Investments

The trouble with non-traded BDCs, like Sierra Income Corp. is that they are complex and inherently risky products.

Lack of liquidity is often problematic for many investors.  Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale.

According to Central Trade and Transfer, a secondary market for non-traded REITs and BDCs, shares of Sierra Income Corp. are currently listed to sell for just $1.71 per share. The original offering price of was $10.00 per share. 

Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so, may be held responsible for any losses.

Filing a Complaint against your Brokerage Firm

To determine whether you may be able to recover investment losses incurred as a result of your purchase of Sierra Income Corporation.,  please contact The White Law Group at 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. For more information on the firm, visit www.WhiteSecuritiesLaw.com.