Private Equity Investment

tkdp

Hi
I have been sold private equity shares in a company called Palmetto Energy by a brokerage firm in London. The adviser who sold me the shares said the company would IPO on LSE (AIM) in June 2014 with a lock in period of six months after which I would be able to sell the shares.
To date the IPO hasn't happened and is looking less and less likely. I have approached the brokerage firm to try and sell the shares but they are refusing to sell them for me. They have said it is my responsibility to find a buyer and it is the risk I took when I bought into private equity.
I have also found out recently the brokerage firm owns or is part of the same company who shares they sold to me, something they failed to disclose. I am concerned about my investment. Please help.

bigadaj

Which brokerage are you dealing with, are they actually uk based and so regulated?

PE is high risk which means either good returns or potentially using much or all of your money, unlisted shares are difficult to sell at anything like fair value.

tkdp

The firm is Central Markets, they are UK based and FCA registered.

jimjames

When you say "you have been sold" do you really mean that or "have you bought"? There is a difference.

How were you approached or did you contact them? How does this investment fit in with the rest of your portfolio?

I hold private equity investments but not directly using unlisted shares.

bigadaj

They are on the fca register, so make a formal complaint to them and if unsatisfied with their response you can then go to the fca.

tkdp

Thank you JimJames. "I have bought" will be the correct wording. I was approached by this company to open a trading account, which I did. Once I transferred funds into the trading account, I was approached by their private equity division with a sales pitch recommending to purchase Palmetto Shares. I do not have any other private equity investments, but now trade solely in shares.

tkdp

Thank you Bigadaj, I will look into the route of making a complaint.

smpunjabi

can you kindly send me your details by email. I am in the same boat as you. Got the shares palmetto energy and don't to how to sell them. my email I'd is. jointproject100@yahoo.com
please email me . so we can discuss these points

bigadaj

smpunjabi wrote: »

can you kindly send me your details by email. I am in the same boat as you. Got the shares palmetto energy and don't to how to sell them. my email I'd is. jointproject100@yahoo.com
please email me . so we can discuss these points

I wouldn't do this.

Linton

tkdp wrote: »

Thank you JimJames. "I have bought" will be the correct wording. I was approached by this company to open a trading account, which I did. Once I transferred funds into the trading account, I was approached by their private equity division with a sales pitch recommending to purchase Palmetto Shares. I do not have any other private equity investments, but now trade solely in shares.

Your description sounds very much that you were "sold" the possibly duff shares. Buying one-off shares is risky unless you can afford a wide range. Buying small company shares is riskier. Buying shares in a 2 year old small unlisted company is double or quits gambling, usually the latter. It's not a suitable investment for a novice at all. It seems to me that you have justifiable cause to complain.

Reaper

tkdp wrote: »

I was approached by this company to open a trading account, which I did.

Alarm bells are ringing for me. Regulated firms are not allowed to cold call for business except in very limited circumstances (link).

It sounds to me they have either breached the rules or they are a scam "clone" company set up with a similar sounding name to a legitimate firm. I suggest as a first step you check thoroughly who you are actually dealing with. If they are genuine then as Linton says you next step should be a complaint for giving inappropriate financial advice.