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.