Virtus Real Estate Capital LP – Private Placement – Securities Investigation

Virtus Real Estate Capital LP – Investigating Potential Claims

The White Law Group is investigating potential claims involving broker-dealers who may have unsuitably recommended Virtus Real Estate Capital LP to investors.

Virtus Real Estate Capital, LP operates as a real estate investment firm, according to Bloomberg. The company focuses on investments in commercial and residential properties. Virtus Real Estate Capital serves clients in the United States.

Virtus Real Estate Capital LP filed a Form D in 2012 in Austin, Texas to raise capital. According to the filing, the broker sales commissions were estimated at 8% of sales.

Virtus Real Estate Capital LP is a private placement investment. Generally speaking, private placements are not subject to some of the laws and regulations that are designed to protect investors, such as the comprehensive disclosure requirements that apply to registered offerings.

Private and public companies engage in private placements to raise funds from investors. These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%, as well as additional “due diligence fees” that can range from 1-3%.

Are Private Placement investments suitable for you?

Private Placement investments such as Virtus Real Estate Capital LP are not suitable for all investors.  They should only be sold to high net worth, knowledgeable investors.

Your broker has a duty to conduct due diligence of the investment and make sure the investment is suitable for you. Your broker must consider your age, financial situation, current and future needs, investment objectives and tax status.

If your broker recommended Virtus Real Estate Capital LP unsuitably, this could be a violation of the antifraud provisions as well as other federal securities laws.

Have you suffered losses investing in Virtus Real Estate Capital LP at the recommendation of your financial advisor? If so, you may be able to recover your losses.

Investors can file an arbitration claim or request mediation through The Financial Industry Regulatory Authority (FINRA)  when they have a dispute involving the business activities of a brokerage firm or one if its brokers.

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 throughout the country in claims against their brokerage firm.

For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.