Large GPB Fund Posts Revenue and Income Growth
From the Desk of Jim Eccleston at Eccleston Law:
After considerable delay, GPB Capital Holdings finally has released financial statements to its investors regarding one of its largest funds.
GPB, which raised $645.8 million from investors in its private placements, is four years late in releasing financial statements to its investors. According to GPB’s registration filing with the SEC, net income increased to $166.3 million in 2021 after suffering a $28.3 million loss in 2019. Additionally, total revenues increased by 37.5% to $153.4 million over the same period. While GPB began selling private placements in 2013 and has raised $1.8 billion, the company has failed to pay investor distributions since 2018. At least 60 financial advisory firms had agreed to sell GPB private placements.
GPB struggled and was forced to cut distributions for some private placements after the company missed its deadline to file financial statements for its two largest private funds in 2018. The company recently released a statement indicating that there are no immediate plans to pay distributions to investors.
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