GL Beyond Income Fund(GLBFX) was an interval fund that launched in 2012. It had a relatively unique credit strategy, focused on high yield consumer loans, made to young doctors, dentists, veterinarians, and lawyers. Performance was decent for for the first year and half, but then the fund’s management led investors to disaster.
What happened to GL Beyond Income Fund(GLBFX)?
Long story short, Daniel Thibeault, the fund’s founder and manager, stole at least $16 million from investors. Starting in 2013, Thibeault started creating fictitious loans to divert cash from the fund and create phony assets. They fabricated paperwork for loans, using individuals who were unaware that loans originated in their names. The SEC filed a civil complaint in January 2015, and the FBI prosecuted Thibeault in a separate case.
GL Beyond Income Fund never formally deregistered, but it stopped making public filings with the SEC. Interval Fund Tracker dropped it from its historical net asset growth dataset in the second half of 2014.
The last time they disclosed portfolio composition was in October 2014. According to this filing, the fund had $38.5 million in net assets, and a diverse portfolio of loans. Many of these loans have since matured, and the fund has paid some distributions to investors. Based on court filings, at least 40% of the portfolio consisted of fictitious loans.
Thibeault was sentenced nine years in prison for the fraud scheme, and was ordered to pay disgorgement of approximately $17.1 million. Yet investors are still stuck. The process of unwinding the fund could take many more years.
What Can GLBFX Investors Do Now?
Investors have been stuck in limbo holding an illiquid asset with no relief in sight. Fortunately there is a way GL Beyond Income Fund investors can recoup cash. Alternative Liquidity Capital will consider purchasing GL Beyond Income Fund Shares. Please visit Alternative Liquidity Capital’s website, or email [email protected] for more information.
Fortunately blowups like GLBFX have been rare in the interval fund space. Due diligence is essential to ensure you are investing in the best possible funds. Interval Fund Tracker’s premium offering includes the most comprehensive research tools for the unlisted closed end fund sector.