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Just one day after announcing the acquisition of Cetera, RCS Capital Corp.’s (RCAP) Nicholas Schorsch said he would buy independent broker/dealer J.P. Turner for $27 million. The addition J.P. Turner increases Schorsch’s advisor headcount to about 9,225.
“A year ago, if you didn’t sell non-traded REITs, nobody had ever heard this man’s name,” said Larry Papike, president and founder of recruiting firm Cross-Search in Jamul, Calif. “Now, he’s the second or third largest player in the independent contractor space today.”
Schorsch, best known as head of non-traded REIT sponsor American Realty Capital, got into the independent b/d business in June with the acquisition of First Allied and the Legend Group. He also bought Summit Brokerage Services and Investors Capital Holdings later in 2013. But Cetera, a network of four broker/dealers and about 6,600 advisors is the largest deal to date. Did he overpay for Cetera?
Atlanta-based J.P. Turner had about $4.3 billion in assets and 325 producing reps as of 2013.
The IBD has a history of regulatory issues. In December, FINRA ordered the firm to pay $707,559 in restitution to customers for sales of unsuitable leveraged and inverse ETFs. The firm also faced legal claims related to the sale of Provident Royalties, a private placement that went bust.
The deal, subject to regulatory approvals, is expected to close later this year.
Stay tuned for more on this developing story…