RCM Asset Management pushed further into the managed futures space today with the announcement it has acquired Attain Capital Management.
With the move, RCM aims to strengthen its education offerings and broaden its customer base.
“Things that they do very well, RCM does not do well or at all. So the combination of the two firms will really enable us to further our reach in the space,” said Bobby Schwartz, CEO and managing director at RCM.
Terms of the deal were not disclosed.
Attain, which started in 2002 offering trading systems to high net worth individuals, has grown over the past 13 years into a higher profile firm in the managed futures space. That crop of high net worth investors also led Attain into the registered investment advisor (RIA) space, an area that RCM has targeted heavily recently with a series of 26 events around the country. RCM, which launched in 2010, has been focused heavily on the RIA space and creating the tools and products that make it easy for those advisors to offer managed futures.
“The goal is to not only provide that education from Attain, but also offer the turnkey solution from RCM that provides the low-correlated and diversified investments RIAs are looking for,” Schwartz said. “So we plan to build out further distribution for the overall industry.”
RCM plans to expand its menu of CTAs for investors to about 50, from RCM’s current roster that ranges from about 15 to 25 firms.
“If we’re talking about the RIA market, they have to have a wrapper or product put around some of those,” said Jeff Malec, former CEO of Attain, who will stay on with RCM. “That’s where we can offload some of the compliance, legal and financial things that the team at Attain was doing onto the infrastructure at RCM. And that will really allow us to go out and do the due diligence on which other managers we want to put in front of those RIAs.”
Schwartz said this deal will likely be part of a larger consolidation trend in the managed futures space, which has been more fragmented in recent years. Schwartz and Malec also believe that the cost of compliance and technology will continue to increase in the coming years, further pressuring more M&A activity.
“I think you’ll see more consolidation,” he said. “People who do not have the infrastructure and are not capitalized enough, which I believe a lot of people in the IB space are not, are going to have a tough time in this environment as regulation continues to change.”
Schwartz said that this move will allow RCM to grow both its RIA and high net worth investor customer bases.
“With RCM, you’re not only going to see us get further into the space we’re in, but we’re also forward thinking about certain technologies that we want to get into, and further distribution down the road which brings more accessibility to that end user,” he said.