NEW YORK, Oct. 1, 2013 /PRNewswire/ -- RCS Capital Corporation ("RCAP") (NYSE: RCAP) announced today that on October 1, 2013, a newly formed wholly-owned subsidiary of RCS Advisory Services, LLC, which is an operating subsidiary of RCAP, has entered into an agreement to acquire substantially all the assets related to the business and operations of, and acquire certain liabilities of, a group of related companies (the "Hatteras Funds Group") that manage and distribute the Hatteras Funds ("Hatteras Funds"), a family of funds that provides alternative investment solutions to financial advisors through SEC-registered investment companies and other investment vehicles. Following the closing of the acquisition, the Hatteras Funds Group and the Hatteras Funds will continue to operate under current management and the "Hatteras" brand.
RCAP believes that the acquisition will advance RCAP's strategic goal of growing its family of companies and expanding its platform of alternative investment offerings and constitutes the deployment of a majority of the proceeds from RCAP's June 2013 initial public offering. Nicholas S. Schorsch, Executive Chairman of RCAP, commented, "With over $2 billion under management across multiple alternative investment funds, the Hatteras Funds Group manages and distributes 'best of class' liquid alternative investments to what we view as a sophisticated client base. We are excited to announce this acquisition opportunity bringing a first-rate management team and one of the premier liquid alternative investment firms into our family of companies. We are pleased to be able to add their liquid alternative investment funds to our platform of durable income solutions."
Mr. Schorsch continued, "The Hatteras Funds Group, led by founder David Perkins, manages what we view as an exciting and first class alternative fund complex that draws on the talents of its internal managers as well as high quality investment firms respected throughout the alternative investment management industry."William M. Kahane, Chief Executive Officer of RCAP, commented, "Adding this fifth line of business to RCAP will complement our existing durable income investment solutions, further build out our distribution footprint through SEC-registered investment companies and wire houses, and provide greater incremental revenue and earnings for RCAP, increasing value for our shareholders." Mr. Kahane added, "The anticipated acquisition of the Hatteras Funds Group has not been factored into our previously issued 2013 guidance." Edward M. Weil, Jr., President of RCAP, commented, "We believe that the acquisition will enhance our ability to provide top performing, integrated investment solutions to retail investors, and significantly expand our presence in the liquid alternative investment space. This channel is growing rapidly as investors seek to put their money to work in non-correlated funds offering direct exposure to hedged strategies, in a liquid wrapper." Mr. Perkins, CEO of the Hatteras Funds Group, commented, "We believe that our clients will benefit from immediate access to RCAP's well-capitalized and diverse distribution platform. We are excited to join with RCAP allowing us to continue to develop alternative investment solutions for financial advisors and their clients across the liquidity spectrum."
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