ARC’s RCS Capital To Establish a Crowdfunding Investment Platform
July 21, 2014
As if American Realty Capital’s Nick Schorsch hasn’t already left his mark on raising capital for real estate sponsoring 12 public non-traded investment offerings, now his firm RCS Capital Corp. is establishing a crowdfunding investment platform which it will brand under the name, “We R Crowdfunding.”
RCAP expects “We R Crowdfunding” to launch in September 2014 as part of RCAP’s integrated financial services platform under the direction of Michael Weil, RCAP’s president.
“We expect ‘We R Crowdfunding’ to provide investors direct access to public and private offerings, including Regulation A and Regulation D offerings, mutual funds and closed-end fund offerings, in a variety of industries and sectors,” Weil said. “We R Crowdfunding’ looks to the future of securities sales by adding an important element to our full-service retail financial services firm.”
The crowdfunding investment platform will permit investors, whether working with financial advisors or exploring investment opportunities on their own, to access, investigate and participate in a wide range of offerings from a vast pool of asset classes.
“We are making a small capital investment at this time to gain access to a significant potential market that we expect to develop over the next several quarters, Weil said.
Crowdfund investing was established by Title III of the federal JOBS Act in 2012, which directed the Securities and Exchange Commission (“SEC”) to relax rules prohibiting the general solicitation of investments. Crowdfund investing relies on general solicitation, often via the Internet, to inform and attract capital to specific investment opportunities. A 2013 study by the World Bank predicts that crowdfund investing could grow to become a $300 billion annual market in the U.S. over the next 10 years.
In connection with this initiative, RCAP acquired substantially all of the assets of New York based Trupoly Inc., an investor relationship management portal, which will be integrated into RCAP’s new crowdfunding investment platform.