If You Want To Explore Your Legal Options Contact Our Investment Loss Recovery Law Firm
The law firm Shepherd Smith Edwards and Kantas is investigating potential claims for HPS Corporate Lending Fund (HLEND) investors after BlackRock imposed a 5% cap on redemptions, leaving shareholders unable to withdraw nearly $600 million. The firm is evaluating whether brokers fulfilled their due diligence and suitability requirements when marketing this $26 billion private credit fund, which has recently faced a surge in withdrawal requests and concerns over industry lending practices.
Shepherd Smith Edwards and Kantas Non-Traded BDC Recovery Attorneys (investorlawyers.com) are speaking to HPS Corporate Lending Fund investors to determine whether they may have grounds for an investment loss recovery claim against their financial advisor, who marketed and sold them this private credit fund by BlackRock Inc.
BlackRock’s HPS Corporate Lending Fund is a $26B private credit fund and one of the largest non-traded business development companies (non-traded BDCs). It is marketed to rich investors and oversees loans to midsize companies. After HPS Corporate Lending Fund (HLEND) shareholders asked to withdraw about $1.2B (9.3% of the Fund’s net asset value (NAV), BlackRock announced it had placed a 5% cap on repurchases. That means these HLEND investors will only be getting back around $620 million.
This is the first quarter in which HPS Corporate Lending Fund investor redemption requests have been higher than 5%. Following news of the newly imposed withdrawal limit, BlackRock shares saw an over 7% drop in price.
HLEND is not the only private credit fund to see nervous investors trying to get out. Their worries come from concerns regarding industry lending practices and exposure to businesses that could be heavily impacted by artificial intelligence.
I’m An HLEND Investor. How Do I Know If I Have A Claim Against My Broker?
Financial advisors are supposed to conduct the proper due diligence to ensure an investment is suitable for an investor before marketing and selling the product to them. Brokers also must make sure the investor fully understands the risks involved, as well as the nature of the investment. When due diligence failures, negligence, misrepresentations and omissions, overconcentration, or other broker misconduct play a part in causing an investor to sustain losses, the financial advisor could be held liable.
The first step is to contact our skilled investment loss recovery law firm today. We have more than 100 years of collective experience representing investors against brokerage firms and investment advisers. We can determine whether broker negligence or misconduct played a part in your portfolio losses and if you should file a claim for financial recovery.
Broker-customer disputes are usually made in FINRA arbitration. You want to work with seasoned securities lawyers who have experience representing investors who have suffered losses in non-traded BDCs. Shepherd Smith Edwards and Kantas Non-Traded BDC Recovery Attorneys are familiar with this type of risky alternative investment. We have the knowledge, skills, and resources to pursue complex claims against financial advisors, including large Wall Street firms.
Contact Our Non-Traded BDC Recovery Attorneys
Call (800) 259-9010 or fill out this online form.