A day after Apollo backed out of a plan to form a joint venture with RCS Capital (RCAP), Hatteras Funds says it is buying its business back from RCAP in order to re-establish itself as an employee-owned alternative investment firm.
“We are excited to re-establish Hatteras as a 100% employee-owned firm. We will continue to focus on providing alternative investment solutions designed to help financial advisors build better, more diversified portfolios for their clients,” said CEO David Perkins, in a statement on Tuesday. “We believe we are well-positioned to execute on our business plan because of our strong asset base and deep relationships with financial advisors.”
RCS Capital, which owns the Cetera Financial Group of broker-dealers, bought Hatteras in June 2014. The fund group, though, says it has “continued to operate as an independent reporting segment over the past 16 months.”
The firm adds that it does not plan to make changes to Hatteras Funds’ leadership or portfolio management teams as a result of the transaction, which is expected to close in early 2016.
On Monday, RCS Capital, led by CEO Michael Weil, said it was selling its troubled wholesale-distribution unit to Apollo Global Management (APO) for $25 million. However, a deal valued at $378 million in August to form AR Global Investments with Apollo was cancelled.
Speculation about the future of Cetera, which is led by Larry Roth, has been rampant over the past few months, as RCAP’s stock has plunged.