Larry Roth Quits as CEO of RCS Capital
Larry Roth resigned as CEO of RCS Capital, according to an SEC filing. He took the job only two months ago.
Roth will continue to serve as CEO of Cetera Financial Group, according to the filing. His resignation as CEO of RCS Capital did not stem from a disagreement with the company or the board of directors, according to the document.
"We're very pleased that Larry Roth is transitioning back to serving solely as CEO of Cetera Financial Group," said Joseph Kuo, a spokesperson for Cetera Financial Group, in an emailed statement. "Having accomplished his primary objective of reaching an agreement with RCS Capital lenders to financially restructure and transform into a Cetera-only entity, Larry is now eager to focus all of his attention and energies on the continuing success of Cetera and the financial advisors served by the network."
Bradley Scher, chairman of RCS' executive committee, will take over as CEO of the troubled firm, which recently said it would plan to file Chapter 11 bankruptcy.
Since 2005, Scher has been a managing member of Ocean Ridge Capital Advisors, a consulting firm specializing in helping companies that are experiencing financial challenges, according to the firm's website. Ocean Ridge also sometimes serves as trustee of liquidation and litigation trusts.
RCS will pay Scher, 55, $20,000 per month, according to the filing.
RCS Capital, once fast-growing, is expected to file for bankruptcy in late January. The firm announced plans earlier in January to restructure Cetera, its largest holding, with a $150 million injection of capital from lenders in order to convert it to an independent firm.
First-lien lenders include investment firms Fortress Investment Group, Eaton Vance Management and Carlyle Investment Management, according to SEC documents.
The funds will be used to "make continued significant investments in technology, advisor growth and service enhancements in what is already an industry-leading platform for the financial institutions and financial advisors Cetera supports," the company said at the time of the announcement.
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- Latest RCS Twist: Roth Named CEO