May 20, 2014 (Tampa, Fla.) – Tampa-based boutique investment firm Validus Group announced today that it has entered into a purchase agreement to sell Validus Strategic Capital Partners (“VSCP”), which owns SC Distributors, LLC, a multi-product alternative investment distribution organization and Strategic Capital Advisory Services, a provider of advisory and operational services to non-exchange traded alternative investment vehicles (collectively “Strategic Capital”), to RCS Capital Corporation (“RCAP”), a market leader in financial advisory services and the leading distributor of direct investment programs in the United States for an initial purchase price of $80 million, and additional, potential consideration to be determined pursuant to an earn-out mechanism.
“I am very excited by this transaction and hope to realize significant upside through the earnout,” said Mario Garcia, Jr., CEO and Managing Partner of Validus Group. “I believe it is an excellent fit for both RCAP and Strategic Capital. Since inception, we have focused on delivering superior products and services to investment professionals and their clients. This transaction will help us more effectively execute on our mission going forward and provides immediate, compelling value to all stakeholders.”
Strategic Capital will operate as a stand-alone business alongside RCAP’s existing wholesale distribution brokerage and other financial services companies. Following the close of the transaction, Strategic Capital will continue to be operated by existing management under the Strategic Capital brand.
“The acquisition of Validus Strategic Capital Partners allows us to further diversify RCAP’s wholesale distribution platform with more institutional quality investment products,” said Nicholas S. Schorsch, Executive Chairman of RCAP. “We look forward to working with Strategic Capital’s experienced management team and investment professionals while leveraging their proven distribution model and innovative technology platform.”
Strategic Capital has been affiliated with Validus Group since 2010. The transaction is expected to close in the third quarter of 2014 and is subject to certain regulatory approvals, filings and other customary closing conditions.
About Validus Group
Validus Group is a Tampa, Florida based boutique investment firm controlled by Mario Garcia, Jr., that develops, owns and manages real estate and real estate related businesses. Other affiliates of Validus Group include GulfShore Bank, Carter/Validus REIT Investment Management Company, LLC, a significant commercial real estate portfolio, and Validus Senior Living, an owner and operator of an expanding portfolio of multi-family properties for seniors.
“With the sale of SC, we plan on investing in current affiliates and we are continually looking at new ones,” said Garcia. “We also see Validus Senior Living as a tremendous growth opportunity as Americans get older. We’re constantly looking for ways to better serve our senior demographic.” Mario Garcia Jr. was born and raised in Tampa and founded Validus Group in 2004. He is also the President and Chief Executive Officer of EMSI, a national medical device company which he established in 1995 as a start-up business.
More than 300 people work at Validus Group and its affiliates, mostly in Florida. To learn more, visit www.vgres.com/affiliates. To learn more about Validus Senior Living, visit www.validusseniorliving.com.
RCAP is a publicly traded Delaware holding company listed on the New York Stock Exchange that was recently formed to operate and grow businesses focused on the direct investment industry. RCAP holds a direct economic interest in Realty Capital Securities, a FINRA registered wholesale broker-dealer and an investment banking and capital markets business, American National Stock Transfer, LLC, an SEC registered transfer agent, RCS Advisory Services, LLC, a transaction management services business, SK Research, LLC, the initial components of a new research division dedicated to alternative investment programs, and Cetera Financial Holdings, Inc., a financial services holding company that provides retail broker-dealer and investment advisory services through four distinct independent broker-dealer platforms: Cetera Advisors, Cetera Advisor Networks, Cetera Financial Institutions and Cetera Financial Specialists.
Additional information about RCAP can be found on its website at www.rcscapital.com. RCAP may disseminate information about itself, including the results of its operations and financial information, via social media platforms such as Facebook, LinkedIn and Twitter.