RCS Capital (RCAP) said Monday that its wholesale broker/dealer businesses, including Realty Capital Securities, SC Distributors and The Hatteras Funds, raised $270 million in December, up from $260 million raised in November. The unit raised $9.7 billion in 2014.
At the end of October, RCAP’s sister company American Realty Capital Properties (ARCP) announced a $23 million accounting error. Of the 31 investment products that RCAP distributes through its wholesale broker/dealer, 14 of them are affiliated with American Realty.
After the error was announced, several broker/dealers and custody and clearing firms suspended sales of ARCP products. RCAP says 123 of those suspended selling agreements have been reinstated to date. The firm now has 87 percent of its original selling agreements in place.
RCAP’s wholesale distribution results suffered in the third quarter, with pro forma adjusted EBITDA down 74 percent year over year and revenue down 7 percent over the same period. Equity sales were flat during the quarter at about $2.3 billion.