GPB Capital describes itself as a “New York-based alternative asset management firm that seeks to acquire income-producing private companies.” GPB raised more than $1.5 billion in capital held in private limited partnerships that invest primarily in auto dealerships and waste management businesses.
Investments in GPB Capital were sold by various brokerage firms including Royal Alliance Associates Inc., SagePoint Financial Inc., FSC Securities Corp., Woodbury Financial Services Inc., Newbridge Securities, Ladenburg Thalman, Kalos Capital, Inc., Concorde Investment Services (DBA Peregrine Private Capital Corporation), National Securities Corporation, and Hightower Securities.
Since missing its April 30, 2018, deadline to register the raised funds, GPB’s offices in Manhattan have been searched by the FBI. The SEC also issued a subpoena to GPB seeking information.
In July 2018, InvestmentNews reported that GPB missed the deadline to file financial statements with the Securities and Exchange Commission (“SEC”) for two of its largest funds; GPB Automotive Portfolio and GPB Holdings II. In August 2018, GPB announced it was taking a break from raising new money to focus on straightening out the accounting for the two funds.
On June 21, 2019, GPB Capital reported significant losses in the value of GPB Holdings II and GPB Automotive Portfolio, which declined more than 25% and 39%, respectively. GPB’s other funds reported declines in estimated value ranging from 25% to 73%. Following the announcement, Fidelity Investments instructed its broker-dealer clients to remove GPB Capital-issued private placements from the Fidelity platform within 90 days. The GPB Capital funds are:
GPB Automotive Portfolio, LP
GPB Cold Storage LP
GPB Eurobond Finance PLC
GPB Holdings II, LP
GPB Holdings III, LP
GPB Holdings Qualified, LP
GPB Holdings, LP
GPB NYC Development, LP
GPB Scientific, LLC
GPB Waste Management, LP (formerly: GPB Waste Management Fund, LP)
If you are an investor that lost more than $100,000 in GPB related losses you should consider all legal options. If you wish to discuss your particular situation and the potential for the recovery of your investment losses, or you have information of interest, please contact us for an evaluation of your potential case.