RCAP Inks Deal for ICH in Schorsch Double-Header

NEW YORK CITY-Having announced on Tuesday that it would acquire the Hatteras Funds Group, RCS Capital Corp. said Wednesday it had signed a letter of intent to acquire Investors Capital Holdings Ltd. RCAP did not disclose terms of the deal, an SEC filing by ICH indicated that RCAP, led by executive chairman Nicholas Schorsch, would pay $7.35 per common share, or $52.2 million.

Based in Lynnfield, MA and formed in 1995, ICH provides independent broker-dealer services and investment advisory services. It operates primarily through its wholly owned broker-dealer and registered investment advisor subsidiary, Investors Capital Corp.

With approximately 550 registered representatives across the United States, ICH is expected to complement and diversify RCAP's revenue stream from its other lines of business. These include an existing wholesale broker-dealer, investment banking and capital markets services, transaction management and transfer agency businesses. Headed by president and CEO Tim Murphy, ICH will continue to operate autonomously as part of the RCAP family of companies.

When the ICH deal closes, RCAP expects to have deployed the remaining proceeds from its June IPO. Subject to customary closing conditions, it's expected to be finalized in the first quarter of 2014.

Tuesday brought news that RCAP, through a newly formed subsidiary of operating subsidiary RCS Advisory Services LLC, would acquire the Raleigh, NC-based Hatteras Funds Group, which also will continue to operate under its current management and brands. The Hatteras Funds is a family of funds that provides alternative investment solutions to financial advisors through SEC-registered investment companies and other investment vehicles.

"With over $2 billion under management across multiple alternative investment funds, the Hatteras Funds Group manages and distributes 'best of class' liquid alternative investments to what we view as a sophisticated client base,” says Schorsch. “We are pleased to be able to add their liquid alternative investment funds to our platform of durable income solutions.”

Schorsch, a heavy hitter in New York City CRE as well as nationally, will be among the industry leaders taking the stage for the "View from the Top" panel discussion at RealShare New York this coming Tuesday (Oct. 8) at the Metropolitan Club in Midtown Manhattan. For registration information, click here.

The double-header of acquisitions follows last week's closing of RCAP Holdings' deal for First Allied Holdings, a retail financial services company based in San Diego. First Allied, including its Legend Group division, manages over $32 billion in assets for 300,000 clients nationwide. RCAP Holdings is a holding company managed by Schorsch, William Kahane, Michael Weil, Peter Budko and Brian Block.