With already $1.8B in investor funds, GPB Capital Holdings is now placing a pause on raising more funds while it concentrates on putting in order the accounting and financial statements of two of its biggest funds, the GPB Automotive Portfolio and the GPB Holdings II. Both, collectively have raised nearly $1.3B in investor money. To date, the two funds have paid brokers $100.1M in sales commissions.
The halt comes after GPB Capital, which is a top seller of risky private placements and concentrates on purchasing auto dealerships, missed its April deadline to file financial statements for the two funds with the US Securities and Exchange Commission. According to GPB Capital CEO David Gentile, in a letter that InvestmentNews was able to get a copy of, the delay in filing is a result of having to deal with accounting standards that mandate the two funds generate yearly audited financial statements that must be in compliance with SEC regulations, as well as with the Public Company Accounting Oversight Board’s standards.
Gentile, who headed up his own accounting and advisory firm before launching GPB in 2013, said that “best practices and efficient reporting are a top priority”— hence the temporary halt in accepting money from new investors. Meantime, fund redemptions have been suspended and reportedly will resume after the financial statements and public filings are submitted.
SEC filings note that GPB Automotive Portfolio has raised at least $622.1M from rich investors since 2013. GPB Holdings has raised $645.8M in the last three years.
Up to 60 brokerage firms have sold the GPB funds, including Advisor Group broker-dealers Sagepoint Financial Inc., FSC Securities Corp., Royal Alliance Associates, Inc., and Woodbury Financial Services Inc. All of these firms been named in past complaints alleging investor losses caused by broker fraud or investment adviser fraud.
GPB Investor Claims
If you are an investor that has sustained losses from investing in GPB Holdings II or GPB Automotive Portfolio, contact Shepherd Smith Edwards and Kantas, LTD LLP today. Our investor lawyers are here to help investors in their fight to recoup their private placement fraud losses. Contact us today about your GPB fund investments.
Top private placement manager GPB Capital halts sales to review accounting, InvestmentNews, August 17, 2018