Business Development Company Loss Recovery Attorneys

Shepherd Smith Edwards and Kantas Business Development Company Loss Recovery Attorneys Investigates Blue Owl Capital BDC Losses

Our Business Development Company Loss Attorneys Are Looking Into Allegations Of Broker Negligence

If you sustained losses in either Blue Owl Capital Corp (OBDC) or Blue Owl Capital Corp III (OBDE), Shepherd Smith Edwards and Kantas (investorlawyer.com) can help you explore your legal options. We represent investors who have sustained losses in business development companies (BDCs) in which broker misconduct or negligence was involved.

The two companies are planning to merge. However, there have been some concerns of possible fiduciary duty breaches and other alleged legal violations related to this union. Some shareholders have asked whether the merger registration statement is misleading.

In a recent update, both Blue Owl BDCs denied the allegations. They also noted that Blue Owl Capital Corp III declared a special dividend of 52 cents/share payable by the end of last month. More financial details were provided.

Following the merger, the surviving entity will be called Blue Owl Capital Corp.

What Are Business Development Companies?

 A business development company invests in small companies, medium-sized companies, and distressed companies. Its main focus is to help these companies grow in the early stages or, in the case of troubled companies, help them get out of financial trouble. There are public BDCs and private, non-traded BDCs. While the latter aren’t exposed to the markets and the volatility that can occur there, they tend to have high-net-worth requirements or ask for larger initial investments.

A report by Blue Vault notes that there are changes in how non-traded business development companies have been performing. Fitch even forecasted that BDCs could see their quality of assets potentially going down. One reason for this is that companies that business development companies invest in could end up incurring more debt because of higher interest rates. A slowing economy might also make it more difficult to obtain funds.

Business development companies can be risky investments and, although many are open to retail investors, this doesn’t mean that all BDCs are suitable for inexperienced or conservative investors. Often complex investments, a business development company may offer high-risk loans to private equity-backed companies. Rising interest rates or inflation can lead to problems for BDCs. Economic woes could harm the businesses they invest in and hurt profits.

Why Speak With Seasoned Business Development Company Loss Recovery Attorneys?

Brokerage firms are supposed to conduct the proper due diligence before recommending any investment to a customer. Suitability for each investor has to be assessed. Financial advisors are required to make sure any risks are adequately disclosed and that the investor understands said risks. Unfortunately, it isn’t uncommon for brokers to unsuitably recommend BDCs because of the high commissions they can earn even if the investment isn’t in line with a customer’s risk tolerance level or financial goals.

Shepherd Smith Edwards and Kantas represent retail investors, retirees, accredited investors, high-net-worth investors, and others against brokerage firms and investment advisers who were negligent or engaged in some type of misconduct. This may include best interest violations, misrepresentations and omissions, and more.

We have the skills and knowledge to identify when your BDC losses warrant grounds for a FINRA lawsuit against your broker-dealer. Over the years, more than 90% of our clients have obtained full or partial financial recovery while working with us.

Call (800) 259-9010 or fill out this contact form to schedule your free no-obligation case assessment with one of our Blue Owl Capital BDC Loss lawyers.