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Written by 5:53 pm Investment Loss Recovery

Wildermuth Fund Liquidation

Wildermuth Fund Liquidation, featured by top securities fraud attorneys, the White Law Group

Tender Offer of Wildermuth Fund Shares at $2.50 per Share 

Have you suffered losses investing in Wildermuth Fund? If so, the securities attorneys at The White Law Group may be able to help you. 

The Wildermuth Fund, a closed-end interval fund, reportedly seeks to provide long-term capital appreciation to investors by investing in a diversified portfolio of early-stage private equity positions in various asset classes including technology, real estate, healthcare, energy, and hedge funds, according to its website. 

On November 2, 2023 the Wildermuth Fund filed a prospectus supplement that reported that both Daniel Wildermuth and Carol Wildermuth resigned from the board of trustees and from their officer roles at the Fund. Mr. Wildermuth further resigned as chairman of the board and the advisory agreement with Wildermuth Advisory, LLC, was terminated. 

The Wildermuth Fund reported total assets of $103.8 million as of June 30, 2023, according to its most recent filings. The Fund’s NAV per share was $10.00 as of August 14, 2023. Wildermuth Fund previously announced in June 2023 that its board had approved a plan of liquidation for the Fund but has yet to disclose what it is. 

Alternative Liquidity Index, LP has announced an offer to purchase up to 238,000 shares of the Wildermuth Fund for $2.50 per share, a 75% discount to the most recently reported NAV per share. The offer expires December 20, 2023.

Wildermuth Fund Loses Qualification as RIC 

According to filings with the SEC, Wildermuth Fund reportedly announced that as of October 15, 2022, it no longer qualifies as a regulated investment company (RIC).  

According to the filings, the change in qualification means that the fund’s taxable income will reportedly be subject to tax at corporate rates without any deduction for distributions to shareholders.  

The company also notes in the filing that distributions will generally be taxable as ordinary income to shareholders to the extent of the fund’s current or accumulated earnings and profits. According to the filing, if the shareholder has held the fund’s shares for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date, the dividends will be eligible to be treated as qualified dividend income.  

Further, any “return of capital” dividends, those that are not paid from the fund’s current or accumulated earnings and profits, are generally not taxable but do reduce the shareholder’s tax basis in the fund shares. If the shareholder’s tax basis has been reduced to zero or below, such distributions are taxable. This will apply for 2022 and any year in the fund doesn’t qualify as a regulated investment company.  

If Wildermuth fund seeks to requalify as a regulated investment company in future tax years, it may be required to recognize unrealized gains, pay taxes and make distributions before requalifying, according to the filing.  

Hiring a Securities Attorney 

Brokerage firms have a responsibility to adequately disclose all risks before selling any investment and must consider suitability factors such as age, financial needs, and risk tolerance to name a few. Firms that do not perform adequate due diligence on an investment or demonstrate a breach of fiduciary duty can be held accountable for losses incurred through FINRA arbitration.   

If you are concerned about an investment in Wildermuth Fund, the White Law Group may be able to help you. Please call the offices at 888-637-5510 for a free consultation with a securities attorney.   

The White Law Group, LLC, is a nationwide law firm specializing in securities fraud, securities arbitration, investor protection, and securities regulation/compliance, with offices in Chicago, Illinois, and Seattle, Washington. 

With over 30 years of experience in securities law, The White Law Group possesses the proficiency needed to assist investors who have suffered losses in securities, and investments. For further details about The White Law Group, visit our website at https://whitesecuritieslaw.com. 

 

    

   

   

Tags: , , , , , , Last modified: December 1, 2023