The Spectacular Rise and Fall of Direct Lending Investments (DLI)
Updated: Mar 11, 2020
SEC says wildly popular fund inflated returns for years and investors could lose 25% (or more) of their money. Also: how the "roach test" saved me from investing in DLI, and how it might help you avoid a similarly catastrophic mistake.
(Disclaimer: I'm not an accountant, registered financial advisor or attorney. Always consult your own financial and/or legal advisors before making any tax, financial or legal decisions. Code of ethics: We do not receive any money from any sponsor or platform for anything including guides, tutorials, postings, reviews, referring investors, affiliate leads or advertising. Nor do we negotiate special terms for ourselves above what we negotiate for the benefit of private club members.)
2020-03-11 Update: Bloomberg, reports that investors are expected to lose at least 60%+ now, and Brendan Ross is no longer part of the firm.
CORRECTION: April 4th 2019 9:18 AM: The reference to 75% in the investor class action lawsuit referred to the percent of Guardian VOIP invested in the 2 bankrupt telecom companies, and not the percent DLI invested in GVOIP and subject to loss. This has been corrected.
Saying that Direct Lending Investments (DLI) was "popular" with investors is like saying a car that's lit on fire is "a little bit warm".