After making recent waves with retail acquisitions, Nicholas Schorsch's RCS Capital Holdings is adding a wholesale broker-dealer to its growing portfolio of financial services businesses.
RCS said Tuesday that it has entered into a purchase agreement for $80 million to buy a wholesale broker-dealer and an advisory firm focused on alternative investments -- SC Distributors and Strategic Capital Advisory Services, respectively -- from Validus Strategic Capital Partners, a Tampa, Fla.-based boutique investment firm.
SC Distributors describes itself as a wholesale distributor of select alternative investment products to advisors throughout the U.S. The firm has sales of $775 million year to date, according to the RCS announcement. Strategic Capital provides advisory and operational services to non-exchange-traded alternative investment vehicles, RCS says.
The transaction is expected to close in the third quarter of 2014 and will involve operating SC Distributors and Strategic Capital Advisory Services as a stand-alone business alongside RCS's existing wholesale distribution brokerage -- a move that company officials say will further diversity the RCS product offerings and revenue stream.
RCS has been on a growth spree lately, entering deals to buy a string of independent broker-dealers -- including giant network Cetera Financial Group, as well as First Allied Securities, Investors Capital, Summit Brokerage Services and J.P. Turner -- and launching a research unit as well.
The acquisition of Validus Strategic Capital Partners allows us to further diversify RCAPs wholesale distribution platform with more institutional quality investment products which are not sponsored by AR Capital, said Schorsch in a statement. We look forward to working with SCs experienced management team and investment professionals while leveraging their proven distribution model and innovative technology platform. This acquisition is part of our overall vision to provide our growing retail investor base with multiple investment solutions through our family of leading investment vehicles.
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