Investors Capital shareholders back Schorsch's RCS Capital merger

$52.5 million cash and stock deal scheduled to close on Friday.
JUL 21, 2014
Investors Capital Holdings Ltd. said Tuesday its shareholders had approved the terms of the merger with RCS Capital Corp., best known by its ticker symbol RCAP. Announced last October, the deal is scheduled to close on Friday, Investors Capital said in a statement Tuesday. Buying Investors Capital Holdings for $52.5 million in cash and stock was one of five separate acquisitionsby RCAP and its executive chairman Nicholas Schorsch to build a far-ranging network of independent broker-dealers that are home to 9,000 registered representatives and advisers. Investors Capital Holdings is the last of those announced acquisitions to close. According to a filing with the Securities and Exchange Commission, Investors Capital shareholders will receive $7.25 in cash per share or an equal consideration of RCAP stock, which was trading at $21.50 on Wednesday morning in New York. The biggest asset of Investors Capital Holdings is its independent broker-dealer, Investors Capital Corp. The firm had 441 producing reps and advisers in 2013 and total revenues of $93.2 million. At the end of June, RCAP said it had closed its previously announced acquisition of the Hatteras Funds Group, a family of alternative investment mutual funds. Hatteras Funds will continue to operate under current management and the Hatteras brand.

Latest News

Advisor moves: LPL, Raymond James, Brighton Jones raid the talent pool
Advisor moves: LPL, Raymond James, Brighton Jones raid the talent pool

Firms continue their quest to attract and retain the best advisor teams.

Most advisors say AI portfolio construction is worth $500 a month
Most advisors say AI portfolio construction is worth $500 a month

A survey from TacticalMind AI found 69% of advisors say a high-quality AI platform that makes investment recommendations and constructs portfolios is worth $500 monthly, while research-only tools are valued closer to $250.

CAIS embeds Claude AI into advisor workflows for alternatives intelligence
CAIS embeds Claude AI into advisor workflows for alternatives intelligence

The alts tech provider's latest integration lets advisors query fund data and surface portfolio insights without leaving their primary workspace.

FINRA puts structured product supervision under the microscope
FINRA puts structured product supervision under the microscope

The regulator is scrutinizing how some firms oversee concentrated positions in complex "worst-of" notes – and wants answers.

RIA moves: Beacon Pointe tops $4B in New England with latest female-founded partner firm
RIA moves: Beacon Pointe tops $4B in New England with latest female-founded partner firm

Meanwhile, Carson Group fully integrates a decades-old practice in Phoenix, Arizona, and Triad Wealth touts its 5x growth to hit a $2 billion milestone.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline