RCS Capital Corporation (RCAP) yesterday announced its operating results for the first quarter. Notably, the company’s wholesale broker-dealer raised $1.6 billion during the first three months of the year.
While the company reported first quarter revenues of $187.2 million, that figure is a decrease from the $218.6 million of last year’s the same quarter. The decrease is mainly due to cycles of closing and launching new offerings.
Despite the lower revenue, the RCAP executives feel sure that the company is ahead of pace to reach its full year target. The company’s wholesale broker dealer, RC Securities, impressively averages about $40 million a day in sales.
Already up to 11 direct investment offerings and 3 open-ended funds for a total of 14, the company provides investors with a huge range of options.
And there’s more to come. “We’ll probably ramp to about 24 programs by year end of this year and we’ll stay there. About half of those will be liquid and about half of those will be the non-traded REITs and non-traded BDCs that are in our system,” commented executive chairman, Nicholas Schorsch.
In regards to the benefits of so many offerings, Mr. Schorsch stated, “What we’re doing is creating a greater diversification to allow investors to choose whether they want to be in a liquid product, a semi-liquid product like an interval fund, or a non-liquid product like our non-traded REITs, or a traded product like ARCP…”
Growing and changing rapidly, RCAP has many plans for the future and hopes to bypass, to some degree, the cyclic nature of the industry with a greater number of quality offerings.