Schorsch buys independent broker-dealer J.P. Turner in second deal this week

Deal comes in wake of blockbuster $1.15B acquisition of Cetera Financial

Jan 17, 2014 @ 9:39 am

By Bruce Kelly

Nicholas Schorsch is leaving no stone unturned in the independent broker-dealer marketplace. A day after announcing that RCS Capital Corp., of which he is chairman, intended to pay $1.15 billion for the giant Cetera Financial Group Inc., the firm said Friday it was buying midsize independent broker-dealer J.P. Turner & Co. for $27 million in cash and stock.

The pending acquisition of J.P. Turner pushes the Schorsch network of broker-dealers to about 9,300 registered reps and financial advisers, once all pending acquisitions are completed. J.P. Turner has about 325 affiliated reps who control $4.3 billion in assets under management. The firm produced $66.3 million in revenue in 2012, according to InvestmentNews data for the last year available.

That contrasts sharply with the 6,600 reps and advisers affiliated reps at the four Cetera broker-dealers who control about $145 billion in assets under management.

The acquisition will be funded from RCS Capital stock and cash from working capital, according to an investor presentation.

In an interview with InvestmentNews on Thursday, Mr. Schorsch likened his burgeoning network to the old Merrill Lynch & Co. Inc. or Raymond James Financial Inc.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

INTV

When can advisers expect an SEC fiduciary rule proposal and other regs this year?

Managing editor Christina Nelson and senior reporter Mark Schoeff Jr. discuss regulations of consequence to financial advisers in 2018, and their likely timing.

Recommended Video

Path to growth

Latest news & opinion

Cutting through the red tape of adviser regulation is tricky

Don't expect a simple rollback of rules under the Trump administration in 2018 — instead, regulators are on pace to bolster financial adviser oversight.

Bond investors have more to worry about than a government shutdown

Inflation worries, international rates pushing Treasuries yields higher.

State measures to prevent elder financial abuse gaining steam

A growing number of states are looking to pass rules preventing exploitation of seniors.

Morgan Stanley reports a loss of advisers after exiting the protocol for broker recruiting

The firm said it lost 47 brokers in the fourth quarter, the most in any quarter of 2017.

Morgan Stanley's wealth management fees climb to all-time high

Improvement reflect firm's shift of more clients into fee-based accounts priced on asset levels, which boosts results as markets rise.

X

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 investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

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

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print