RCS Capital Corporation: An Investment Firm With 27%

Upside Potential

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

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

grow and maximize value for its advisors and clients

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

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

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

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

Investment Management• Subsidiary

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

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

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

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

Are these dividend stocks an even better investment than RCS Capital?