National investment loss lawyers KlaymanToskes is investigating brokerage firms and financial advisors who unsuitably recommended investments in FS Specialty Lending Fund (FSSL) (formerly, FS Energy and Power Fund) to their customers. Our law firm believes many investors may have been misled regarding the risks and liquidity issues associated with FS Specialty Lending Fund (FSSL), formerly known as FS Energy and Power Fund.
Investors who suffered losses in the FS Specialty Lending Fund, or any other investments, may be entitled to financial recovery through the filing of a FINRA arbitration claim.
If you suffered losses in FS Specialty Lending Fund, contact securities attorney Steven D. Toskes to discuss your potential recovery options at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation to discuss potential recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
FS Specialty Lending Fund (FSSL), formerly known as FS Energy and Power Fund (FSEP), is a non-traded business development company (BDC) that primarily invests in the debt and equity of private U.S. companies. The fund recently began taking steps to list on the New York Stock Exchange (NYSE), which includes a proposed reorganization into a registered closed-end fund under the ticker symbol FSSL. This move follows a 1-for-6 reverse stock split in May 2025 aimed at increasing the fund’s net asset value (NAV) per share to meet NYSE listing requirements. As of March 31, 2025, FSSL’s net asset value (NAV) was $3.37 per share.
Investments in FS Specialty Lending Fund (FSSL) and other non-traded business development companies (BDCs) carry significant risks that may not be suitable for all investors. One major concern is the potential loss of principal. FSSL shares were originally sold for $10.00 per share, but are currently valued at just $2.30 on the secondary market. Since inception, the fund has posted a cumulative return of -14.86%, highlighting the potential for substantial investor losses.
FSSL shares are not easily traded, and investors may struggle to find a buyer if they wish to exit the investment. Even when a sale is possible, it may be at a steep discount, resulting in further losses. Unlike traditional publicly traded securities, non-traded BDCs like FSSL are not subject to the same regulatory oversight and often involve complex fee structures and greater exposure to risk.
The Fund executed a reverse stock split (1-for-6) in May 2025. While reverse splits may artificially increase a share’s price, they often signal financial distress and can erode investor confidence, potentially leading to further declines in value.
Investment firms may be held liable for any losses incurred by their customers in the event of unsuitable investment recommendations, misrepresentations or omissions of material facts, and/or an overconcentration of the customer’s portfolio in one particular investment, class, or market sector, as well as failure to conduct adequate due diligence on investment offerings recommended by the firm.
If you suffered losses in FS Specialty Lending Fund and/or any other investments due to your brokerage firm/financial advisor, contact securities attorney Steven D. Toskes to discuss your potential recovery options at (888) 997-9956 or fill out a short contact form for a free and confidential consultation.
Potential conflicts of interest may arise when issuers incentivize brokerage/investment advisory firms with substantial commissions to promote their financial products. A problem often associated with REIT and BDC investment recommendations is the high sales commissions brokers typically earn for selling these investments. A brokerage firm or representative that recommends investments to their customer for the purpose of being compensated through increased commissions, and enriches themselves rather than benefiting the client, is violating securities laws.
To recover investment losses, you generally won’t go through the traditional court system with a lawsuit. The correct path is through FINRA arbitration, a specific process designed for these types of disputes. It involves presenting your case to a panel set by the Financial Industry Regulatory Authority (FINRA), not a courtroom. This approach is streamlined and focused on investment disputes, making it a suitable and effective way for investors to seek compensation for losses caused by financial advisors or brokerage firms.
FINRA (the Financial Industry Regulatory Authority) is a self-regulatory organization that oversees brokers and brokerages. In the event of a dispute between an investor and their financial advisor, investors can choose to file a FINRA arbitration claim. FINRA is overseen by the Securities and Exchange Commission (“SEC”).
The arbitration process is designed to be much faster than the court system and allows both parties to present their case before a panel of arbitrators. The arbitrators will then decide how to resolve the dispute, including ordering the advisor to pay damages for any losses suffered by the investor.
If you need help filing a FINRA arbitration claim to recover FS Specialty Lending Fund losses, and/or any other investment losses, you are encouraged to contact attorney Steven D. Toskes, Esq., at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss potential recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
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 FS Specialty Lending Fund (FSSL). 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 suffered investment losses as a result of a recommendation to purchase FS Specialty Lending Fund, and/or any other investments by your broker/financial advisor, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation.