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FINRA OKs RCAP’s Cetera Deal; Schorsch Group May Buy NorthStar Realty

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Click to enlarge. The BD holdings of RCAP. Source: RCAPRCS Capital (RCAP) said early Monday that FINRA has approved its $1.15 billion purchase of Cetera Financial’s broker-dealer operations, which include about 6,600 independent financial advisors.

Meanwhile, RCAP affiliate American Realty Capital Properties (ARCP) reportedly is in talks to buy NorthStar Realty Finance Corp., according to Bloomberg. NorthStar is a loan originator and manager of commercial real estate debt.

ARCP, led by Nicholas Schorsch, bought Cole Real Estate Investments last year. Schorsch also is executive chairman of RCAP. (Schorsch is named in the IA 25 for 2014.)

Realty Capital announced its deal with Cetera in January and says it “expects to close the Cetera acquisition in the coming days in accordance with the merger agreement.”

The company is also buying Investor’s Capital (ICH), J.P. Turner and Summit Brokerage Services—giving it about 9,000 reps and roughly $200 billion in assets. 

“This creates one of the most powerful capital accumulation machines on the globe,” Schorsch said, when the Cetera deal was announced earlier this year. “It will attract the best and brightest financial advisors, and with $3.1 billion in revenue brings us close to LPL Financial (LPLA) and puts us ahead of others in the business.”

Cetera was formed in 2010 following the sale of three ING broker-dealers; it includes four platforms — Cetera Advisors, Cetera Advisor Networks, Cetera Financial Institutions and Cetera Financial — and is led by CEO and President Valerie Brown.

In June 2013, RCAP Holdings shared the news that it was buying First Allied Securities and the Legend Group from Lovell Minnick Partners. (RCAP Holdings owns Realty Capital Securities, which is the wholesale broker-dealer and affiliate of American Realty Capital Properties.) 

A request for a statement on the two deals was declined by RCAP and ARCP. 


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