RCS Capital (RCAP), which owns the Cetera Financial Group of 11 independent broker-dealers, said Thursday that its wholesale business increased equity capital by 46% in March.
Three RCAP units – Realty Capital Securities, Strategic Capital Distributors and Hatteras Funds – issued $476.3 million to investors last month vs. $326.8 million in February. Sales of nontraded direct investment programs were $433.5 million in March 2015, up close to 45% compared with $300.1 million in February.
As a result of these increases, total equity raised during the first quarter of 2015 was $1.1 billion.
In the fourth quarter of 2014, the company had $946 million in total direct investment sales, including those carrying the American Realty Capital brand, down substantially from $2.1 billion in Q4’13. These results represented a year-over-year drop of 55% in equity sales and a 51% decline in revenue tied to these sales.
Investors and broker-dealers began shunning some RCAP products after American Realty Capital Properties (ARCP) announced $23 million of accounting errors in late October.