Wall Street Bankruptcies: The Sequel

What do the following two lists have in common?
List 1
List 2

The first list is the list of the biggest companies that filed for bankruptcy by assets during the Great Recession. The second list is a list of the biggest companies that have filed for bankruptcy so far in 2020 in the wake of the COVID-19 pandemic.

The next step for many of these companies is liquidation.

The bankruptcy trustee takes over and starts liquidating company assets and doling out what meager cash is left. Creditors get paid first, then the lawyers and then everybody else until last and least, the stockholders get paid if there’s anything left and 80% of the time, there’s nothing left. Common stockholders are last in line and are always left holding the bag.

Don’t expect the high profile bankruptcies to end any time soon. The Sequel is coming . . . wait until the Q2 and Q3 numbers come out later this year . . . more bankruptcies and more fallout.

COVID-19 has spared very few in its devastation of the U.S. and world economies. Ranked by assets alone, the magnitude of bankruptcies this year has already surpassed that of 2008.

Besides driving many companies to bankruptcy, the Coronavirus has fundamentally changed the capital markets in ways few could have predicted.

Flooded from an influx of millions of stock market newbies bored from quarantines and social distancing, the stock market is experiencing unprecedented volatility with the largest daily price swings seen since the 1929 crash.

Inexperienced and undisciplined, these stock market newbies – consisting of mostly Millenials – have an insatiable appetite for risk-taking and high-risk stocks, even snapping up stocks of companies who have filed for bankruptcy with little hope of a turnaround.

Stock market volatility and downturns aren’t just hurting the reckless traders creating uncertainty, they’re hurting the general investing public as well – many watching their retirement portfolios dwindle before their eyes.

Aren’t you tired of your retirement fortunes being tied to the actions of inexperienced and jittery newbies?

Are you tired of extreme market volatility?

Are you looking for more certainty in your investment future?

Savvy investors have been avoiding Wall Street for years. Tired of playing in a sandbox with very few barriers to entry – where anybody can buy in with as little as the price of one share of stock – savvy investors look to more exclusive markets with higher barriers to entry and even higher barriers to exit.

Why?

Savvy investors want to be surrounded by other savvy investors who invest for the long-term who aren’t susceptible to crowd behavior.

That’s why they seek out alternative investment opportunities in the private markets – opportunities reserved exclusively for Accredited Investors.

Accredited Investors are inherently more financially sophisticated than the average investor. With a minimum requirement of possessing a minimum net worth exceeding $1 million or income exceeding $200,000 for each of the past two years, Accredited Investors are presumed to understand financial risk and can sustain losses.

In other words, they are less likely to act on impulses and out of desperation in difficult times. They can afford to ride out turbulence and stick with an investment.

Being surrounded by other Accredited Investors is one reason why savvy investors have flocked to illiquid private opportunities outside of Wall Street.

There are other benefits.

Alternative assets like income-producing tangible assets like real estate, agriculture, and productive businesses have long proven to provide better risk-adjusted annual returns over time than the S&P 500. Moreover, these assets are backed by a hard asset and the cash flow is typically shielded from Wall Street volatility.

In a time of turmoil like what we’re living through now, illiquid tangible cash flowing assets shield investors from inflation and a loss of income, unlike their public counterparts.

IT’S NOT TOO LATE TO REALLOCATE

Don’t get stuck holding the bag as public companies fail.

In a new economy, those seeking shelter from Wall Street bankruptcies and volatility should consider alternative markets where you’ll be surrounded by like-minded investors.

Invest in assets that are tangible where you can never be left with zero when a company fails.

There’s no better time than now to consider reallocating to recession-proof hard assets.

DISCLAIMER

This is neither an offer to sell nor a solicitation of an offer to buy the securities described herein.

THE OFFERING IS MADE ONLY BY THE PRIVATE PLACEMENT MEMORANDUM. THIS MATERIAL MUST BE READ IN CONJUNCTION WITH THE PRIVATE PLACEMENT MEMORANDUM IN ORDER TO UNDERSTAND FULLY ALL OF THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES ASSOCIATED WITH AN INVESTMENT IN THE SECURITIES TO WHICH IT RELATES AND MUST NOT BE RELIED UPON TO MAKE AN INVESTMENT DECISION.

The offering of securities described herein will not be registered under the Securities Act of 1933 (the “Securities Act”) or the securities laws of any state and the securities are being offered and sold in reliance on exemptions from the registration requirements of the Securities Act and such laws. Neither the Securities and Exchange Commission nor any other federal or state agency has passed upon the merits of or given their approval to the offering of the securities, the terms of the offering or the accuracy or completeness of the offering materials. The offering of securities is being made only to Accredited Investors, as defined in Rule 501(a) of Regulation D of the Securities Act. An investment in the securities is highly speculative and involves substantial investment and tax risks. All prospective investors must review the Private Placement Memorandum in its entirety, including the section entitled “RISK FACTORS” before investing.

An investment in Four Peaks Capital Partners, LLC is highly speculative and involves substantial risks, including, but not limited to: (1) Four Peaks Capital Partners, LLC success depends upon the performance of the Manager in managing Four Peaks Capital Partners, LLC and its investments, including decisions involving investment of Four Peaks Capital Partners, LLC’s capital and the acquisition and disposition of properties and there is no guarantee Four Peaks Capital Partners, LLC will raise enough capital to perform its investment objectives; (2) There can be no assurance that a prospective investor will receive any return on investment in Four Peaks Capital Partners, LLC and/or realize any profit on a prospective investor’s investment in Four Peaks Capital Partners, LLC and a prospective investor could lose all or a substantial portion of its investment; (3) The Manager has limited or no net worth and there can be no assurance that the Manager will have sufficient funds to meet its obligations to Four Peaks Capital Partners, LLC or to otherwise financially support Four Peaks Capital Partners, LLC; (4) The Class A members and Class B members have no power to take part in the management of Four Peaks Capital Partners, LLC and have limited voting rights and will not have the opportunity to evaluate or approve any of Four Peaks Capital Partners, LLC’s investments; (5) The Class A Interests and Class B Interests will be illiquid, and the transferability of the Class A Interests and the Class B Interests will be substantially restricted; (6) Four Peaks Capital Partners, LLC may not have the cash flow necessary to make distributions to its members; (7) Four Peaks Capital Partners, LLC will not diversify its investments and, therefore, the success of Four Peaks Capital Partners, LLC will be dependent upon the success of the properties; (8) There are substantial risks associated with real-estate investments and ownership of storage facilities and mobile home parks; (9) There are various potential conflicts of interest among the Manager and its Affiliates and their principals.
Investors must read and carefully consider the discussion set forth under the section entitled “RISK FACTORS” in the Private Placement Memorandum for a complete discussion of these and other risks pertaining to this investment.

These projections are speculative and based on specific assumptions, which, if incorrect, would cause the actual returns to differ materially from the projected returns. You should review the entirety of the assumptions and risks set forth in the Private Placement Memorandum.

Any underlying assumptions and any forward-looking statements herein may not be accurate, the projections herein shown may not occur, and actual results could differ materially due to risks and uncertainties that are beyond the Company’s ability to control or accurately predict. To the extent, the information in this communication conflicts with the information in the Private Placement Memorandum, the information in the Private Placement Memorandum shall govern.

The securities offered are an illiquid investment and involve a high degree of risk; Investors should be able to bear the loss of some or all of their investment. Investors should read and understand all of the risks and the entire Private Placement Memorandum before making a decision to invest. Past performance is no indication of future results and there can be no assurance that Four Peaks Capital Partners, LLC will be able to execute the investment objectives for the Properties or the Offering.

This material is for general information purposes only and does not constitute legal, tax, investment or other professional advice on any subject matter. Information provided is not all-inclusive and should not be relied upon as being all-inclusive.
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Any reference to “Four Peaks” “we” “our” or “fund,” regardless of capitalization, shall refer to Four Peaks Capital Partners, LLC, and its Affiliates.

For additional risks and disclaimers, visit https://www.fourpeakscapitalpartners.com
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