GPB Capital Holdings Background Information
GPB Capital Holdings is an alternative asset management firm based in New York. The firm advertises a focus on the acquisition of income-producing private companies. A large majority of GPB Capital Holding’s portfolio includes investments in Automotive Retail, Debt Strategies, Special Situations, Technology Enabled Services, Waste Management and Healthcare. GPB Capital Holdings has reportedly claimed to have raised $1.8 billion from very prominent, accredited investors through private placement funds in waste management and car dealerships. However, there is mounting concern that these investors were not accredited.
GBP Capital Holdings first came under scrutiny when it announced in the fall of 2018 that its funds were suspending dividends and redemptions and would not be selling any additional shares while the funds addressed accounting issues. Shortly after that, GPB Capital Holdings’ auditor abruptly resigned, raising concerns that there could be accounting or other improprieties occurring within the GPB Capital Holdings funds. Around the same time, the Massachusetts Securities Regulator, William Galvin, announced that his office was investigating more than 60 brokerage firms within Massachusetts who had been selling GPB Capital Holdings to their customers.
As recent as March of 2019, GPB Capital Holdings found themselves under investigation by the Federal Bureau of Investigation (“FBI”). This visit occurred just a few months after the US Securities and Exchange Commission (“SEC”) and the Financial Industry Regulatory Authority (“FINRA”) each began probing GPB Capital Holdings separately.