Fast-growing RCS Capital (RCAP) has expanded its presence in the alternative investments space with the acquisition of Raleigh, N.C.-based Hatteras Funds Group. The transaction will provide more financial resources to Hatteras, a leader in the emerging market for liquid alternative investments.
The move is just the latest in a series of acquisition and appointments by Realty Capital. Last week, it finalized its acquisition of First Allied Holdings, a San Diego-based broker-dealer. Last month, its New York-based RC Securities unit hired former Advisor Group CEO Larry Roth to oversee investment banking business, as well as its distribution company and transfer agency.
“We are excited to announce this acquisition and this opportunity to bring a first-rate management team and one of the premier boutique liquid alternative investment firms in the industry into our family of companies and to add their liquid alternative investments funds to our platform of distribution products,” RCAP chairman Nicholas Schorsch said in a prepared statement.
In an interview last month, Roth said he was hired as part of an executive plan for the firm to expand beyond real estate with a mandate to start distributing a “full array of alternative investments to be sold through independent broker-dealers, banks and wirehouses.” Roth said RC Securities will also be looking to distribute alternative investments distributed by third parties.
Industry observers expect the parent company to continue its acquisition spree. One analyst said RCAP is seeking to build a “mini-KKR and maybe not a mini-version of it.”