RCS Capital Corporation’s (RCAP) wholesale broker-dealer subsidiaries raised approximately $431 million in equity capital during the month of May, a slight decrease from April when the company took in $476.3 million.
RCAP’s wholesale broker-dealers consist of Realty Capital Securities, LLC, the dealer manager for the AR Capital sponsored non-traded direct investments, SC Distributors LLC, another dealer manager for non-traded direct investment programs, and The Hatteras Funds, a liquid alternatives manager and distributor. Collectively, the three units raised equity capital for 30 direct investment programs and registered investment companies in May.
Sales of direct investment (DI) programs dropped during the month to about $396 million. In April, DI sales were about $430 million and in March, that figure was $433.5 million.
Despite the decrease in capital raise, the company remains optimistic and hopes to benefit from liquidity events such as this week’s listing of an AR Capital sponsored REIT Global Net Lease, Inc.
Bill Dwyer, Chief Executive Officer of Realty Capital Securities, commented, “May’s wholesale distribution sales of $431 million were again strong, representing the third consecutive month of sales over $400 million, showing the continued market demand for alternative investment programs. We are further encouraged by yesterday’s listing of Global Net Lease, Inc., the first of a series of anticipated liquidity events that we expect to bolster sales growth throughout the year. These anticipated liquidity events, coupled with the ongoing inflows of equity capital into the alternative investment space, further strengthen our outlook for 2015 and beyond.”