GPB Capital Investors May Receive Some Compensation Under Proposed Distribution Plan
From the desk of Jim Eccleston at ÍøÆسԹÏ
GPB Capital Holdings investors have not received returns on their investments since 2018. According to InvestmentNews, after years of litigation, a court-appointed receiver has submitted a plan to return funds to the 17,000 investors who purchased $1.8 billion in GPB limited partnerships.
The receiver's plan, filed in federal court in Brooklyn, outlines potential recovery amounts ranging from zero to full reimbursement for some investors. GPB Cold Storage investors may see gains of 40 percent to 50 percent. However, not all investors will be made whole, and some may recover nothing, as reported by InvestmentNews. Founded in 2013, GPB Capital quickly grew by selling high-risk private placements through independent broker-dealers.
By 2018, the firm had raised $1.8 billion, promising investors an 8 percent annual return. However, that same year, red flags surfaced when GPB and its largest funds failed to file required financial statements with the SEC. InvestmentNews reports that, more than six years later, investors remain in limbo, waiting for the court to resolve objections and approve the receiver’s plan. Gentile and Schneider are scheduled for sentencing in April.
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