Schorsch's RCAP completes First Allied deal

Firm has 1,500 affiliated registered reps and advisers; $32B in client assets.
FEB 07, 2014
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.

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