Contact Our Closed-End Fund Loss Recovery Attorneys Today 

Priority Income Fund has reportedly lost nearly 80% of its original value due to defaults and distressed exchanges in its high-risk collateralized loan obligation (CLO) holdings. In response to heavy investor losses, the law firm Shepherd Smith Edwards and Kantas is offering free case assessments to help retail investors pursue recovery claims against brokers who unsuitably recommended or misrepresented the fund.

Shepherd Smith Edwards and Kantas (investorlawyers.com) is offering free assessment to investors who suffered losses in Priority Income Fund. This closed-end fund is a risky private investment that should never have been sold to retail investors. Now, it has reportedly lost 79-80% of its original value. Its initial offering price was $15.00, with its current value as of July 31, 2026 at $3.15. A July 2026 tender led to heavy oversubscription. This offer prorated repurchases to around 15.23% of the shares requested.

Priority Income Fund, which holds corporate debt-backed collateralized loan obligations (CLOs), blames a rise in defaults and distressed exchanges in the syndicated loan market, as well as a decline in loan asset spreads. This has purportedly impacted CLO holdings by negatively affecting income while lowering collateral levels.

What Are Some Of The Issues Impacting Priority Income Fund Investors Now?

• During the fiscal year that was concluded at the end of June 2025, the Fund sustained $178M in investment losses.
• By December 2025, another $82.2M in investment losses occurred.
• While total assets were at over $900M at the end of 2024, by the end of last year, they were down to $479M.
• This fund invests at least 80% of its assets in securitized pools of senior secured loans, including equity and junior tranches of collateralized loan obligations (CLOs). These can be more high-risk than direct loan investments.
• Underlying loans tend to be tied to companies with below investment grade debt. This kind of debt is more volatile and at higher risk of defaulting than investment-grade debt.
• Priority Income Fund plans to place its common shares on a national securities exchange before the end of 2026. Non-traded closed-end funds that move onto an exchange have been known to trade at discounts to Net Asset Value (NAV) after listing. This can lead to more losses for investors.

Why Are Brokers Under Scrutiny Over Priority Income Fund Sales To Investors?

• While Preferred Capital Securities is the dealer-manager for this fund, brokerage firms and investment advisers sold shares to investors.
• There are growing concerns that financial advisors unsuitably recommendedthis leveraged CLO Fund to retail investors and retirees.
• Questions about whether brokers made misrepresentations and omissions of the risks have arisen.
• There also have been allegations made against financial advisors regarding due diligence failures, breach of fiduciary duty, Regulation Best Interest violations, negligence, and supervisory failures related to the sale of Priority Income Fund shares.
• Brokers-dealers earned up to 6% in upfront selling fees of the total amount invested, and there was also a .75% dealer-manager fee. This means investors paid 6.75% on their Priority Income Fund shares from the start.

Why Should You Speak With Our Broker Misconduct Lawyers Over Your Priority Income Fund Losses?

• Shepherd Smith Edwards and Kantas is representing Priority Income Fund investors in FINRA arbitration against brokerage firms.
• We are a knowledgeable securities law firm that has been fighting for investors for many decades.
• Our leveraged CLO Fund recovery attorneysknow how to assess the cause of your investor losses and whether you should go after your broker and sue for damages.
• We have helped thousands of investors to collectively win many millions of dollars in awards and settlements against the brokers and investment advisers who were liable.

Talk To Us About Priority Income Fund and Whether You Should Sue Your Broker

Call (800) 259-9010 or contact us online to schedule your free case consultation.