National investment loss lawyers KlaymanToskes is investigating brokerage firms and financial advisors who unsuitably recommended investments in MSC Income Fund (f/k/a HMS Income Fund) to their customers, when the investment was sold for a share price of $10. Recently, the fund has lost over 20% of its market value, and our firm believes many investors may have been misled regarding the risks and liquidity issues associated with Hines Interests Limited Partnership’s private placement offering.
If your financial advisor recommended an unsuitable Real Estate Investment Trust (“REIT”) or Business Development Company (“BDC”) based on your investment profile, or disregarded your risk-tolerance when making investment recommendations, you may be entitled to a financial recovery through FINRA arbitration.
If you suffered losses in MSC Income Fund/HMS Income Fund, or any other alternative investments due to unsuitable recommendations by your brokerage firm or financial advisor, contact securities attorney Steven D. Toskes to discuss your recovery options at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
MSC Income Fund Inc. (formerly known as HMS Income Fund) is a non-traded business development company (“BDC”) sponsored by Hines Interests Limited Partnership. The fund is a private placement investment that provides debt and equity financing solutions primarily to private U.S. companies. MSC Income Fund has faced a number of challenges, including its previous suspension of all distributions to its stockholders, and continued instability of its share price.
As of December 31, 2023, the fund’s Net Asset Value (NAV) is $7.77 per share, representing a 22% decrease from its initial offering price of $10 per share. According to a recent press release, MSC Income Fund announced the final results of its modified “Dutch Auction” tender offer for the purchase of 357,143 Shares at a price of $7.00 per Share. Additionally, according to Central Trade and Transfer, a secondary market for alternative investments, shares of MSC Income Fund were recently listed for only $5.90 per share, which may indicate further losses for investors, and up to a 41% loss from its initial offering price.
MSC Income Fund Inc. (formerly known as HMS Income Fund) is a high-risk, illiquid, private placement investment. Private placements or “Reg D” offerings can be highly volatile investments, as they are early-stage companies with limited information and are not bound to the same Securities Exchange Commision (“SEC”) disclosure requirements as public investment offerings.
In its “risk factors disclosure” MSC Income Fund states “Our investments in portfolio companies involve higher levels of risk, and therefore, an investment in our securities may not be suitable for someone with lower risk tolerance.” The brokers and financial advisors responsible for selling MSC Income Fund/HMS Income Fund may be held responsible for any financial losses sustained by investors.
Financial professionals and their firms have a fiduciary duty to recommend suitable investments that are in their customer’s best interest. Potential conflicts of interest may arise when issuers incentivize brokers/investment advisors with substantial commissions to promote their financial products.
A problem often associated with alternative investment recommendations, such as Non-Traded BDCs and REITs, is the high sales commissions brokers typically earn for selling these investments, which can be as high as 15%. A representative that recommends investments for the purpose of being compensated through increased commissions, and enriches themselves rather than benefiting the client, is violating securities laws.
KlaymanToskes is a leading national securities fraud law firm that represents the interests of investors throughout the world who have suffered losses due to broker misconduct, investment fraud, and securities violations.
The article linked below contains important information relating to KlaymanToskes’ investigations of MSC Income Fund/HMS Income Fund, and related investments:
If you suffered losses in MSC Income Fund/HMS Income Fund, or any other alternative investments at a full-service brokerage firm, contact securities attorney Lawrence L. Klayman to discuss your recovery options at (888) 997-9956 or fill out a short contact form for a free and confidential consultation.
The firm has helped recover over $600 million for investors (exclusive of attorneys fees and costs), and can help you determine if your loss is due to financial advisor misconduct, unsuitable investment advice, and/or other securities violations.
As an investor, there are signs that you should look out for if you believe you have a claim against your broker/advisor for unsuitable investment recommendations in alternative investments, including MSC Income Fund/HMS Income Fund. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encouraged to contact our firm immediately if you have experienced any of the following:
Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.
Engaging the services of an experienced securities attorney to evaluate your specific circumstances is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.
If you purchased unsuitable MSC Income Fund/HMS Income Fund investments, or any other alternative investments through your financial advisor/brokerage firm, and suffered significant losses, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.