Schorsch's RCAP completes First Allied deal

Firm has 1,500 affiliated registered reps and advisers; $32B in client assets

Sep 25, 2013 @ 3:35 pm

By Bruce Kelly

RCAP Holdings LLC said on Wednesday that it had completed its previously announced acquisition of First Allied Holdings Inc.

RCAP Holdings is managed by Nicholas Schorsch, a noted manager of nontraded real estate investment trusts, and his team; it is the holding company for Realty Capital Securities LLC, the leading wholesale broker-dealer for nontraded REITs.

Realty Capital Securities over the past few years has emerged as a powerhouse in raising money for nontraded REITs and other illiquid alternative investments. In August, the firm raised $895.9 million in equity through independent broker-dealers that sell Realty Capital's lineup of products. For the year, Realty Capital has raised $6.1 billion.

The terms of the deal for First Allied, which was first announced in June, have not been disclosed.

RCAP Holdings' purchase of First Allied was its first foray into buying a broker-dealer that sold Realty Capital products. While RCAP has not announced another broker-dealer acquisition, this month, the company hired veteran independent-broker-dealer executive and dealmaker Larry Roth to become chief executive of Realty Capital Securities. Mr. Roth most recently was the CEO of Advisor Group, one of the largest independent-broker-dealer networks in the country.

First Allied has 1,500 affiliated registered reps and advisers who oversee $32 billion in client assets. In a press release, RCAP said it will give First Allied autonomy.

“First Allied and its subsidiaries will continue to operate autonomously under their current management structure and respective brands as part of the RCAP Holdings family of companies,” the company said in a statement.


What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video


The #MeToo movement and the financial advice industry

Attendees at the Women to Watch luncheon commend the #MeToo movement for raising awareness about the issue of sexual harassment and bringing women together.

Latest news & opinion

What the next market downturn means for small RIAs

Firms that have enjoyed AUM growth because of the runup in stocks may find it hard to adjust to declining revenues if the market suffers a major correction.

DOL fiduciary rule likely to live on despite appeals court loss

Future developments will hinge on whether the Labor Department continues the fight to remake the regulation its own way.

DOL fiduciary rule: Industry reacts to Fifth Circuit ruling

Groups on both sides of the fiduciary debate had plenty to say.

Fifth Circuit Court of Appeals vacates DOL fiduciary rule

In split decision, judges say agency exceeded authority.

UBS, after dumping the broker protocol, continues to see brokers come and go

The wirehouse has seen 14 individuals or teams leave and five join for a net loss of $2.4 billion in AUM


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print