KlaymanToskes (“KT”), announces their investigation on behalf of investors into Business Development Companies (“BDCs”), Medley Capital and Sierra Income Corp. On March 7, 2021, Medley Capital Corp. (NYSE: MCC), a direct subsidiary of Medley Management Inc. (NYSE: MDLY), filed for Bankruptcy Protection in the U.S. Bankruptcy Court for the District of Delaware (Case: 21-10526-KBO). Medley Management Inc., is an “alternative asset management firm offering yield solutions to retail and institutional investors” that manages Medley Capital and Sierra Income Corp., a non-traded BDC.
Business Development Companies invest in loans made to non-public companies that do not have access to the traditional publicly traded bond markets to finance business operations. As such, the BDC loan portfolios were inherently more risky than traditional bond investments. In May 2020, a planned merger agreement between Sierra Income Corp. and Medley Capital Corp. (NYSE:MCC) had been terminated citing “the changed circumstances and the unpredictable economic conditions resulting from the global health crisis caused by the coronavirus (COVID-19) pandemic.”
Lawrence L. Klayman explains, “Business Development Companies assume more risks than traditional fixed-income investments, subject to risks that are not easily understood by investors who lack the sophistication to determine the nature of the risks associated with the strategy.”
The sole purpose of this release is to investigate investment advice provided by full-service brokerage firms related to Business Development Companies, such as Medley Capital Corp. and Sierra Income Corp for investors with income investment objectives and a conservative or moderate risk tolerance. BDC investors with losses in excess of $250,000 at full-service brokerage firms, who have information related to the handling of their investment portfolios are encouraged to contact Lawrence L. Klayman, Esq., at (561) 542-5131, and download our Special Investor Report.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation, on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm represents high net‐worth, ultra‐high‐net‐worth, and institutional investors, such as non‐profit organizations, unions, public and multi‐employer pension funds. K&T has office locations in California, Florida, New York and Puerto Rico.