Schorsch's RCS Capital closes Cetera Financial Group acquisition

The $1.15 billion deal brings in 6,600 reps and four B-Ds under the RCAP umbrella

Apr 30, 2014 @ 12:01 am

By Bruce Kelly

RCS Capital Corp. on Tuesday said it had closed its previously announced $1.15 billion acquisition of Cetera Financial Group, which contains four distinct broker-dealers that house about 6,600 registered reps and investment advisers.

RCS Capital, known by its ticker symbol RCAP, said previously that the Financial Industry Regulatory Authority Inc. had approved the merger.

(See also: RCS Capital gets regulatory clearance for Cetera Financial deal)

RCAP and related companies, along with executive chairman of the board Nicholas Schorsch, have spent the better part of the past year on five deals for nine separate broker-dealers that together house 8,900 reps and advisers. The four broker-dealers underneath the Cetera brand are the most prominent so far. In total, the broker-dealers generated $1.7 billion in revenue last year and had $202 billion in assets under administration.

“We are pleased to complete this game-changing transaction well ahead of schedule,” Mr. Schorsch said in a statement. “Working with Don Marron and the Lightyear Capital management team has been a smooth and efficient process, and we appreciate their professionalism and commitment to getting the deal done in a timely manner.”

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Advisers beware: tax law has unintended consequences

Commission accounts could be preferable for some clients, and advisers could be incentivized to move from employee broker-dealers to independent channels.

Recommended Video

Path to growth

Latest news & opinion

Tax reform: 7 essential strategies for financial advisers

While advisers face the difficult task of analyzing the law's impact, they will also have a significant opportunity to prove their value by implementing money-saving strategies for clients as well as their own businesses.

Tax law: Everything advisers need to know about the pass-through provision

The provision is tricky, but could provide advisers and business-owner clients with sizable tax savings.

Bill requiring fiduciary disclosure reintroduced in New Jersey

Measures would obligate financial advisers to tell clients they do not have to act in their best interests.

Merrill Lynch to let advisers text with clients

Texting has been a popular mode of communication for years, but in the past the firm's regulations have prevented advisers from using it.

Bear market for bonds has arrived, Gross says

10-year Treasury rate's move above 2.5% confirms outlook for fixed income, legendary bond manager says.

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