Direct Lending Fund Founder Resigns Amid SEC Investigation
- Company says valuation of an investment may have been inflated
- Direct Lending suspended withdrawals last month after default
Brendan Ross, president and chief executive officer of Direct Lending Investments LLC, listens during the Milken Institute Global Conference in Beverly Hills, California, U.S., on Wednesday, May 3, 2017.
Photographer: Patrick T. Fallon/BloombergDirect Lending Investments’ founder and chief executive officer Brendan Ross resigned amid an investigation by the Securities and Exchange Commission.
Ross quit March 18 after the company found evidence that valuations of one of its investments may have been materially overstated, Direct Lending said in a March 19 letter to investors. The company, which had $758 million in assets in November, said in another letter last month that a different borrower had defaulted on a loan that accounted for about a quarter of its capital. It suspended withdrawals at that time.