Investors in FS Global Credit Opportunities Fund A (“FS Global”) may have FINRA arbitration claims if their investment was recommended by a financial advisor who lacked a reasonable basis for the recommendation, or if the nature of the investment was misrepresented by the stockbroker or advisor.
FS Global was formed as an unlisted, closed-end business development company (“BDC”) under the Investment Company Act of 1940 that invests in loans, bonds, and other instruments.
Investors who wish to sell out of their investment in FS Global are limited in their options due to the its illiquidity. Investors who purchased shares in FS Global at the initial offering acquired shares at $10 per share, but currently has a reported estimated net asset value (“NAV”) of $7.36 per share. Even worse, shares have reportedly been sold in the limited secondary market at prices of between $5.36 and $5.18 per share.