On June 18, 2020, FS KKR Capital Corp II (Symbol: FSKR) was listed on the New York Stock Exchange (NYSE) and has dramatically declined since...and the stock going public was preceded by a 4:1 reverse split that cut the share holdings of investors in the Non-traded Business Development Companies (BDCs) FS Investment Corporation II, FS Investment Corporation III, FS Investment Coronation IV and Corporate Capital Trust II by approximately seventy-five percent(75%).
DPP's and other non-traditional, alternative investments (REITs, Promissory Notes, Limited Partnerships) are typically sold by representatives licensed with independent brokerage firms that often have limited compliance and due diligence mechanisms. These firms and their agents are essentially using their client base to provide venture capital to sponsors that are unable to get traditional financing. In return, they pay excessive commissions (often 8-10%). These alternative investments are illiquid, speculative and only suitable for high net worth, sophisticated investors. Unfortunately, all too often they are pitched to retirees with limited assets promising higher than market interest rates while preserving their retirement capital. Due to the recent exoncomic decline and corresponding cash flow shortages, many of these products are failing...leading to substantial investor losses. Cases such as this are contractually obligated to be arbitrated through the Financial Industry Regulatory Authority (FINRA).
If you have lost money in FS KKR Capital Corp. II or another alternative investment, please contact the securities litigation and FINRA arbitration attorneys at Colling Gilbert Wright & Carter for a complimentary case evaluation.