Real estate mogul Nicholas Schorsch continued his newsmaking run on Wednesday, with the announcement that one of his firms, RCS Capital Corp., has filed preliminary paperwork to purchase the independent broker-dealer Investors Capital Corp.
The news comes on the heels of a similar announcement on Monday that RCS would acquire the liquid alternative investment firm Hatteras Funds, as well as the announcement in early September that high-profile Advisor Group president Larry Roth would join Realty Capital Securities, the nontraded REIT broker-dealer and wholesaler arm of RCS Capital, as its CEO.
The announcement states that longtime Investors Capital Corp. president and CEO Tim Murphy and Hatteras Funds founder David Perkins will continue in their leadership roles with their respective firms.
Jon Henschen, president of IBD recruiting firm Henschen & Associates, praised the Investor's Capital acquisition as a win for the Lynn, Mass.-based firm.
"Investors Capital has been a family culture operation since inception," he told ThinkAdvisor on Tuesday. "With the purchase of the firm, the family culture will stay intact, but now they will have deep pockets behind them, which is always welcome in a small-spread industry. The terms of the purchase were contingent on staffing and culture to stay intact, so for Investors Capital, this was a win-win."
Access to capital is a struggle in the independent channel, he added, and the Schorsch purchase "is a smart way to achieve this goal while remaining conflict-free."
Incorporated in 1995, Investors Capital has 550 registered representatives across the United States.
