Silver Law Group Investigates Point Bonita Capital For Investor Losses

Silver Law Group is currently investigating claims on behalf of clients who may have suffered losses after investing in Point Bonita Capital. We are also investigating whether Point Bonita Capital made false or misleading statements to investors and potential investors regarding its relationship to auto parts conglomerate First Brands, LLP.

Point Bonita Capital is a trade finance-focused hedge fund manager based in New York. Leucadia Asset Management, a subsidiary of Jefferies Financial Group, manages it. The fund invests in private corporate credit, specifically in short-dated receivables, which is a form of factoring where the fund purchases a company’s accounts receivable. Jefferies is a 5.9% investor in the Point Bonita fund, according to a company press release.

Point Bonita was a primary financier of First Brands, LLP. The fund purchased accounts receivable from First Brand’s clients, such as Walmart, O’Reilly Auto Parts, Auto Zone, and others, and payments would be directed to Point Bonita. In mid-September 2025, the payments to Point Bonita stopped. Amid reports of its off-balance-sheet financing, pledging collateral more than once, and potential liabilities as high as $50 billion, First Brands filed for Chapter 11 bankruptcy on September 28, 2025.

Widespread Impact

First Brands’ acquisition of multiple brands included loans, consolidating brands like Fram, Michelin, Anco, and AutoLite under one company. To acquire rival brands, First Brands used this type of debt financing. The company recently stated that it has obtained $1.1 billion in debtor-in-possession financing from its first-lien lenders to support ongoing operations.

Following the bankruptcy filing, institutional investors like Morgan Stanley, BlackRock, and Texas Treasury Safekeeping Trust requested to redeem their investments from the fund.

Jefferies has stated its own exposure is “readily absorbable” and that the fund’s assets unrelated to First Brands are sufficient to cover its debt. However, this offers little comfort to the investors who may directly bear the losses on the impaired First Brands receivables.

First Brands is also under investigation by various regulators for potential fraud, including whether receivables were pledged as collateral more than once.

One issue is the recently implemented tariffs on products brought in from outside of the US, including China, India, and Eastern Europe, among others. Because First Brands owns and operates multiple brands of OE aftermarket products sold at auto parts stores and other retailers nationwide, supply chain disruptions to auto parts stores and independent repair shops nationwide are also a possibility.

Where Does This Leave Investors?

Point Bonita Capitol’s investors are faced with several possible consequences, including significant losses. Much will depend on the recovery of the impaired receivables and the outcome of the ongoing fraud investigations.

Point Bonita invested around $715 million in First Brands’ accounts receivable. But under the circumstances, the fund is facing the risk that some or all of the receivables could be impaired, or even worthless. This leaves investors with the potential for significant financial losses.

While Jefferies has stated it will honor redemptions, investors will receive their money back over four quarterly payments. This lengthens the recovery process, leaving investors’ capital tied up for more than a year. However, the large number of redemption requests could force Point Bonita to liquidate other assets in its portfolio to raise the needed cash to pay those requests.

The bankruptcy court will oversee First Brands’ asset recovery. As a creditor, Point Bonita will seek to recover as much of the funds as it can from those receivables it purchased.

What Can An Investor Do?

There’s not much you can do to speed up the bankruptcy process, and depending on several factors, you may receive far less through bankruptcy than you invested. However, you can seek financial recovery with a FINRA arbitration action.

FINRA arbitration is a method of alternative dispute resolution. It’s ideal for an investor seeking financial recovery from the broker and broker-dealer who made unsuitable recommendations for their risk tolerance and individual financial situation. Arbitration is less complex and less expensive than litigation and takes less time. Our experienced arbitration attorneys can advise you on your rights, the best way to proceed, and help you through the process.

Did You Invest With Point Bonita Capital? 

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.