This editor's note originally appeared in the August 11th print issue of InvestmentNews.
Somehow it seems appropriate that this week's issue has not one but two stories involving Nicholas Schorsch. It is, after all, shark week.
While the rest of the world was gearing up for the Discovery Channel's airing of “Air Jaws: Fins of Fury” or “Sharksanity,”
InvestmentNews senior columnist Bruce Kelly was poking and probing around the expansion of Schorsch's retail brokerage empire.
The most newsworthy story sits at the top of the fold on Page 1 and is about RCS Capital Corp.'s
announcement last Thursday that it is buying VSR Financial Services Inc., a midsize independent known mainly for selling alternative investments.
RCS, controlled by Mr. Schorsch, has already closed on five broker-dealer acquisitions over the past year and has amassed a network of more than 9,200 independent reps and advisers — virtually overnight.
GREAT WHITE ACQUIRER
The latest deal suggests that Mr. Schorsch, like the Great White Acquirer he is, is back to feeding in waters occupied by broker-dealers and will likely unveil more deals in the months ahead.
In another Schorsch-related story,
this one leading our clearing/custody special report on Page 14, Mr. Kelly looks closely at how RCS Capital has suddenly become Pershing's biggest clearing customer. In fact, RCS broker-dealers that use Pershing's clearing services now account for about 8% of Pershing's $1 trillion (yes that's with a “t”) in clearing assets, according to the article.
Mr. Kelly discusses how Mr. Schorsch has not been shy about using his newfound leverage in the broker-dealer space and is negotiating a new clearing agreement with Pershing. And, of course, one has to ask, why shouldn't he? After all, 8% of $1 trillion ain't exactly chump change.
I have no doubt that Mr. Schorsch will continue to build not only his empire but his reputation as a shark among sharks. Tune in for more “Schorschsanity.”
