Update: Sierra Income Corporation BDC

Sierra Income Corporation BDC – Securities Investigation

Have you suffered losses investing in Sierra Income Corporation BDC?  If so, the securities attorneys of The White Law Group may be able to help you.

According to Bloomberg, Sierra Income Corp. is a business development company (BDC) specializing in first lien senior secured debt, second lien secured debt and, to a lesser extent, subordinated debt of middle market companies. It invests in companies with annual revenue between $50 million and $1 billion.

BDCs were created by the U.S. Congress to stimulate investments in privately owned American companies that may have limited access to debt and equity capital. Non-traded BDCs offer retail investors access to private debt, an asset class that typically has only been available to high-net-worth and institutional investors. By investing in a non-traded BDC, individuals are able to pool their capital to invest in private American companies.

Business Development Companies operate much in the same was as REITs (Real Estate Investment Trusts) with non-traded BDCs having many of the same problems for investors as non-traded REITs – like high-risk, high commissions, and lack of liquidity.

The White Law Group continues to investigate Sierra Income Corporation. The main focus of this fund is on senior secured debt, as well as focus on subordinated debt, with a low priority on preferred and common equity. The fund invests 15% of its total portfolio in business services, while 10% focuses on the automotive sector.

3.9 % of Sierra’s investments are in the Energy Sector (oil and gas) including the following:

AAR Intermediate Holdings, LLC

Bennu Oil and Gas, LLC

Dynamic Energy Services International, LLC

Gastar Exploration USA, INC

Greenfield Energy Services, Inc.

Holland Acquisition Corp.

IronGate Energy Services, LLC

One of Sierra’s energy investments, Bennu Oil and Gas, LLC, is one of the many oil and gas companies that have recently filed for bankruptcy since oil prices started dropping in 2014. For more information on Bennu Oil and Gas, click here.

Brokerage firms are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor in light of that particular investor’s age, investment experience, net worth, risk tolerance, investment objectives, and income.  Firms that fail to perform adequate due diligence or that make unsuitable recommendations can be held responsible for investment losses in a FINRA arbitration claim.

Free Consultation

If you suffered losses investing in a Sierra Income Corporation BDC and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 888-637-5510 for a 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 Franklin, Tennessee.  The firm represents investors in FINRA arbitration claims throughout the country.  For more information on the firm, visit https://whitesecuritieslaw.com.