The wholesale distribution arm of RCS Capital Corporation (NYSE: RCAP) raised slightly more equity capital in January 2015 as compared to December 2014. Made up of Realty Capital Securities, LLC, SC Distributors, LLC, and The Hatteras Funds, the group raised over $275 million last month for 30 direct investment programs.
In December of 2014, collective efforts brought in $270 million in equity capital.
Non-traded direct investments took in $238 million in January compared to $228 million for the prior month.
“We believe that January’s total equity sales of $275 million and the $9.7 billion total equity raised for 2014 continue to validate the breadth and strategic positioning of our platform,” commented Michael Weil, Chief Executive Officer of RCS Capital.
In early 2014, Realty Capital Securities, LLC alone would average over $30 million a day in equity capital raised. The spillover from the accounting scandal that’s plagued American Realty Capital Properties, a publicly traded REIT unaffiliated from RCAP caused many independent broker-dealers to suspend selling agreements of alternative investment products distributed by the company.
“We expect the ongoing reinstatement of our selling agreements and the strengthening of our selling group will continue to be a positive contributor to our capital raising activities,” says Weil.
Possible evidence of suspensions being lifted was the increase in volume from December to January.
“With tickets in January up 13% over December 2014, we believe that the momentum we have gained will continue in the year ahead. Importantly, as one of the largest, most successful organizations in retail alternative investment distribution, with 90 external wholesalers, 90 internal wholesalers, and 16 national accounts representatives, we believe we have the scale, products and expertise to capitalize on the attractive opportunities we see going forward,” added Bill Dwyer, Chief Executive Officer of Realty Capital Securities.
RCS Capital Corporation’s wholesale distribution units collectively work with 325 independent broker-dealers and registered investment advisors.