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

schorsch, j.p. turner, M&A, brokerage, IDB, cetera
+ Zoom

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

Featured video

Events

Why the bionic adviser is the way of the future

The bionic adviser is the way of the future. We spoke with Simon Roy of Jemstep to get his insights on how technology will continue to impact the industry.

Video Spotlight

Will It Last As Long As Your Clients Do?

Sponsored by Prudential

Video Spotlight

The Catalyst

Sponsored by Pershing

Latest news & opinion

Brian Block's $4 million bonus was tied to a key metric at ARCP

Prosecution rests case in fraud trial against CFO of American Realty Capital Properties.

Edward Jones is winning the Google search war

Brokerage firm's digital marketing investment helps land it at the top of local and overall search engine results, report finds.

Voya's win in 401(k) fee suit involving Financial Engines bodes well for other record keepers

Fidelity, Aon Hewitt and Xerox HR Solutions are currently defending against similar fiduciary-breach claims.

Collective investment trusts getting more attention from 401(k) advisers

The funds are catching on due largely to lower costs and more product availability, but come with some inherent drawbacks.

Vanguard rides robo-advice wave to $65B in assets

Personal Advisor Services, four times the size of its closest competitor, combines digital and human touch.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print