For the last few years, the consolidation of the independent broker/dealer business has accelerated. The top acquirers may sound familiar: LPL Financial, AIG Advisor Group, and Ladenburg Thalmann, to name a few. But there’s a new acquirer in town, and he’s got a big wallet.
In June, Nick Schorsch, best known as head of non-traded REIT sponsor American Realty Capital, shocked the industry when he made a giant leap into the independent broker/dealer business with the acquisition of First Allied. Since then, Schorsch, under his RCAP Holdings subsidiary, has scooped up four other IBDs and a couple of alternatives managers.
What's next for Schorsch? Jonathan Henschen, president of the recruiting firm Henschen & Associates, expects Schorsch to continue to acquire b/ds to build scale and provide a reliable source of brokers that have access to his firm's products.
"You know you won't have any disruption of sales within your own broker/dealers, much of the same motive as insurance companies with their products," Henschen said.
In August, REP. named Schorsch one of its Ten to Watch in 2014. But the year hasn’t even started. Here’s a look back at Schorsch’s most prominent acquisitions this year.