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RCS Capital Corporation: An Investment Firm With 27% Upside Potential
12

Rcs capital ss july 2014

Aug 17, 2014

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Economy & Finance

The Motley Fool

This investment firm is one of the best values in the financial sector
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Page 1: Rcs capital ss july 2014

RCS Capital Corporation: An Investment Firm With 27%

Upside Potential

Page 2: Rcs capital ss july 2014

Who is RCS Capital?

• Retail advice• Wholesale

distribution• Investment

management• Investment banking• Research

RCS is a full-service investment firm with operations in:

Source: company

Page 3: Rcs capital ss july 2014

• RCS focuses on individual retail investors• The company’s mission is to protect, support,

grow and maximize value for its advisors and clients

Page 4: Rcs capital ss july 2014

Retail Advice

• RCS has the second largest retail financial advisor network in the U.S.– Over 9,000

representatives and advisors in all 50 states

Page 5: Rcs capital ss july 2014

Investment research• Subsidiary SK Research

provides broker-dealers and advisors with analytical resources needed to evaluate investments

• Services include– Due diligence services– Research publications– Training and

education for financial advisors

Page 6: Rcs capital ss july 2014

Wholesale distribution• Through RC Securities

and soon-to-be-acquired SC Distributors, the company distributes alternative investment offerings

• The company is the number one non-traded platform of equity offerings in the market– 34% market share

Page 7: Rcs capital ss july 2014

Types of investments offered by RC Capital

• Public, non-traded Business Development Company• Business Development Corporation of America (

BDCA), which has produced 31% total return over the past two years

• Income funds (ARC)• REITS, like New York City REIT• Many others, listed on RCS’s website

Page 8: Rcs capital ss july 2014

Investment Management• Subsidiary

Hatteras Funds provides unique alternative investment funds such as– Hedged Strategies– Managed futures– Debt/equity– Venture capital funds

Page 9: Rcs capital ss july 2014

Investment Banking and Capital Markets

• RCS is one of the only investment banks focused on the underserved alternative investment sector

• The company advised on $35 of capital markets and M&A activity in 2013 and YTD 2014 and more than $10 billion in debt markets transactions

Page 10: Rcs capital ss july 2014

Why do analysts like RCS?• New products

• RCS had a record quarter for new products in Q1 with the introduction of four new investment products

• $6.3 billion in new equity distributions• Acquisitions improve efficiency

• The company plans to integrate its six retail advice platforms, which will improve the efficiency of operations

Page 11: Rcs capital ss july 2014

A good value!

• RCS trades for just 12 times 2014’s projected earnings of $1.79 per share• Industry average is 18.2 times earnings

• The consensus calls for earnings to grow by more than 50% by 2016