For the last few years, the consolidation of the independent broker/dealer business has accelerated. The top acquirers may sound familiar: LPL Financial, AIG Advisor Group, and Ladenburg Thalmann, to name a few. But there’s a new acquirer in town, and he’s got a big wallet.
In June, Nick Schorsch, best known as head of non-traded REIT sponsor American Realty Capital, shocked the industry when he made a giant leap into the independent broker/dealer business with the acquisition of First Allied. Since then, Schorsch, under his RCAP Holdings subsidiary, has scooped up four other IBDs and a couple of alternatives managers.
What's next for Schorsch? Jonathan Henschen, president of the recruiting firm Henschen & Associates, expects Schorsch to continue to acquire b/ds to build scale and provide a reliable source of brokers that have access to his firm's products.
"You know you won't have any disruption of sales within your own broker/dealers, much of the same motive as insurance companies with their products," Henschen said.
In August, REP. named Schorsch one of its Ten to Watch in 2014 . But the year hasn’t even started. Here’s a look back at Schorsch’s most prominent acquisitions this year.