The Wall Street Journal has published reports of the SEC investigating private credit. The regulator initiated several enforcement actions in the last few months against fund managers.
Regulators have been watching such funds for years. Often referred to as “business development companies” or “BDCs,” these investments are just a new name for an asset class that has a long history of fraud and other troubles.
The opaque nature of these private investments means that troubles within them go unnoticed until the investment collapses. BDCs have a long history of such results. Any broker or advisor recommending such investments to you knew or should have known this.
Jeffrey Pederson has successfully represented hundreds of investors in cases of investment fraud and unsuitable securities. This includes dozens of BDC investors.
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