Call Now For a Free Consultation:
(614) 532-4576
Nationwide Representation

What Is a Master Limited Partnership?

Consult with Our Legal Team
There is never a cost associated with a consultation
Common Questions
For The Advocacy You Deserve Contact Us Today!
We’ll respond and let you know the best way to proceed with your case.

What Is a Master Limited Partnership (MLP)?

An investment that the financial industry has been pushing recently as a hot product is Master Limited Partnerships, or MLPs. In a low interest rate environment, many financial professionals sell Master Limited Partnerships to their customers. Many MLPs have been wrongly sold as a supposedly safe way to earn higher interest rates with little or no risk.

What exactly is an MLP? An MLP is a limited partnership that is publicly traded on an exchange. To be legally classified as an MLP, the partnership must derive most of its cash flow from real estate, natural resources, and commodities. Over the last decade, MLPs have become one of the fastest growing asset classes. With yields approaching 10% or higher, it’s little wonder why investors have taken the bait and bought up MLPs at a record pace.

This is particularly so for retirees who may need income but who might be earning only a little over 1 percentage on a one-year CD at a local bank. While financial professionals loaded up their customers on MLPs, they’ve often overlooked or flat out misrepresented the significant risks associated with these investments.

Are MLPs Bonds?

Contrary to many sales pitches, MLPs are not bonds or bond substitutes. In fact, MLPs are incredibly sensitive to oil and commodity prices. When oil and commodity prices plunge, MLP prices can drop, yield payments might be suspended, and some MLPs might even become illiquid meaning that you can’t sell or get out of the investment.

What to Do if You Suffered Losses in MLPs

If you suffered losses in MLPs that you believe may have been sold to you inappropriately, give us a call. We might be able to help you recover your losses.

We often hear stories about Ponzi schemes that target a particular group or community, such as a church congregation. When a con artist chooses to target a specific group in this manner, it’s called “affinity fraud.” There have been dozens of cases of affinity fraud related to Ponzi schemes just over the last year, which have affected investors all over the nation. Unfortunately, con artists are generally willing to manipulate any advantage they can find that might get you to hand over your cash—and sometimes that means taking your cash and moving on to milk your loved ones.

Atlanta Office

945 East Paces Ferry Road, Suite 2275
Atlanta, GA 30326
Columbus Office

614-224-6000
305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

310-905-8688
2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

216-600-1355
4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

248-817-8214
41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
crosschevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram