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Written by 8:23 pm Blog, Current Investigations

Vida Longevity Fund LP Investment Losses

Vida Longevity Fund LP Investment Losses, featured by top securities fraud attorneys, The White Law Group

Vida Longevity Fund LP  Shareholders may have Claims

The White Law Group is investigating potential FINRA lawsuits involving broker dealers who may have unsuitably recommended Vida Longevity Fund LP to investors.

Vida Capital, based in Austin, Texas, is a multi-billion dollar alternative asset management firm that manages both evergreen and closed-end structures, according to its website. Vida reportedly specializes solely in insurance-linked strategies with a predominant focus on longevity-contingent risk. 

The Vida Longevity Fund LP, an open ended hedge fund, was reportedly formed to target long term life settlements and investments. According to the original prospectus,  the fund promised investors an annualized return of 10-14%.

The fund reportedly offers three share classes, A, B and C, and each comes with significant dealer fees and commissions. Class A shares carry a 5% incentive fee and 2% management fee. Class B Shares come with a 10% incentive fee and 1.5 % management fee, and Class C Shares can have up to 15% incentive fees with 1.75% management fees.

According to a form D filed in 2018, the total offering amount sold to 3,667 investors was purportedly $1,197,124,448, reflecting cumulative subscriptions since inception in 2010. 

Risks of Alternative Investments

Alternative investments are complex and inherently risky products. Unfortunately for investors, many investments have taken a hit due to the Covid-19 global pandemic, and some have suspended distributions during this  uncertain time.

Compared to traditional investments, such as stocks, bonds and mutual funds, alternative investments are significantly more complex and often better suited for sophisticated and institutional investors.

High commissions could be a motivating factor for unscrupulous financial advisors to sell private placement investments regardless of whether the investment is in line with the client’s investment objectives and profile.  Moreover, the total commissions and expenses make it difficult for the investment to perform in line with the market.

They also tend to be illiquid. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.

Filing a Complaint Against your Brokerage Firm

Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.

Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.

Free Consultation with a Securities Attorney

If you are concerned about your investment in Vida Longevity Fund LP, you may be able to file a complaint against your brokerage firm. Please call the securities attorneys of The White Law Group 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 Franklin, Tennessee.

For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.



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