First Allied’s Surprise Sale to REIT Creates ‘Whole New Dynamic’ for BDs
June 12, 2013 by Janet Levaux, AdvisorOne Flush with cash, more REITs could follow in buyer Realty Capital’s footsteps A real-estate group led by investor Nicholas Schorsch said early Wednesday that they planned to buy independent broker-dealer First Allied Securities from its private-equity owner Lovell Minnick Partners, which has owned a majority stake in the IBD for less than two years. First Allied’s buyer is RCAP Holdings, which owns Realty Capital Securities. It is led by Schorsch, William Kahane, Michael Weil, Peter Budko and Brian Block. "In 2007, my partners and I perceived an opportunity to build an open architected, wholesale broker-dealer to distribute best-in-class investment solutions," Schorsch said in a press release. "Today, RCAP Holdings takes another step forward,” he said. “We believe that the challenges and opportunities we witnessed in the wholesale distribution...