RCS Capital Corporation (RCS Capital) recently announced that it has completed its acquisition of independent broker-dealer (IBD) VSR Group, Inc. and VSR Financial Services, Inc. (collectively, VSR).
VSR agreed to be acquired in August 2014 and joins nine other IBDs that are part of the Cetera Financial Group platform, RCS Capital’s independent retail advice platform. The network includes Cetera Advisors, Cetera Advisor Networks, Cetera Financial Institutions, Cetera Financial Specialists, First Allied Securities, The Legend Group, Investors Capital Corporation, J.P. Turner & Company, and Summit Brokerage Services.
“VSR has an established presence, predominantly in the Midwest, and we look forward to working with their advisors to bring customized financial solutions to the growing number of Americans looking for independent financial advice,” commented Larry Roth, Chief Executive Officer of Cetera Financial Group.
Based in Overland Park, Kansas, VSR adds $12.3 million in assets under administration plus 264 advisors to Cetera’s platform. The IBD’s revenue comes from roughly 45% advisory fee income and 55% commission-based fees, with over 60% recurring revenues. VSR enjoys a 98% retention rate of its advisors who average 11 years with the firm.
“The addition of VSR once again demonstrates our commitment to our retail advice channel and continues our investment in the leading network of independent financial advisors. RCS Capital continues to see consolidation opportunities in the industry as firms view scale and enhanced technology as important benefits to broaden their service offering to financial advisors and their clients while continuing to preserve their longstanding culture. We view opportunistic acquisitions as an important source of growth as we work to expand our margins and capitalize on attractive opportunities we see in the industry,” commented Michael Weil, RCS Capital’s Chief Executive Officer.
RSC Capital also agreed to purchase Girard Securities, a California-based IBD with $10 billion of AUM and 250 advisors. That transaction has yet to close.