HATTERAS FUNDS GROUP TO BE ACQUIRED BY RCS CAPITAL CORPORATION

RCS Capital Increases its Exposure to Alternative Investments with Acquisition of Hatteras, a Boutique Alternative Investment Specialist Existing Hatteras Leadership Team to Remain Autonomous RCAP to Provide Access to Integrated Distribution Platform and Financial and Strategic Support New York, NY, and Raleigh, NC, October 1, 2013 – Hatteras Funds Group, a boutique alternative investment specialist providing unique alternative investment solutions to financial advisors and their clients, has entered

into a definitive agreement with RCS Capital Corporation (“RCAP”) (NYSE: RCAP). Following this transaction, the Hatteras Funds Group, which recently celebrated its 10-year anniversary, will continue to operate autonomously under its current management team as a subsidiary of RCAP.

The acquisition will provide significant financial resources to the Hatteras Funds Group, enhancing the firm’s competitive strength and allowing it to expand its alternative investments platform. Hatteras will join RCAP’s existing subsidiaries Realty Capital Securities, LLC, their wholesale distribution and investment banking /capital markets business, RCS Advisory Services LLC, their transaction management business, and American National Stock Transfer, LLC, their stock transfer business.

David Perkins, Hatteras’ CEO commented, “Our clients will benefit from our access to a well-capitalized platform. RCAP’s support allows us to invest in infrastructure, resources, personnel and technology in order to increase our commitment to offering best-in-class investment management and client service. Over the next few years we plan to launch several additional alternative investment solutions that meet the needs of our financial advisors and their clients.”

Nicholas S. Schorsch, Chairman of RCAP, commented “We are excited to announce this acquisition and this opportunity to bring a first-rate management team and one of the premier boutique liquid alternative investment firms in the industry into our family of companies and to add their liquid alternative investment funds to our platform of distribution products.” Mr. Schorsch continued, “The Hatteras Funds Group, led by David Perkins, manages an exciting and first class alternative funds complex that draws on the talents of its internal managers as well as high quality investment firms respected  throughout the alternative investment management industry.”

“We believe the combination of Hatteras Funds and RCAP will be well-positioned to create substantial future value for our clients,” added Perkins.

For more information, please contact Jessica Sherburne at 919.846.2324 or
jessica.sherburne@hatterasfunds.com.