Docupace Announces Independence from RCS Capital
Docupace Technologies LLC, a leading financial services technology provider, has reached an agreement with RCS Capital Corporation (NYSE: RCAP) to repurchase their majority share stake and reestablish itself as a privately owned corporation.
“It’s an exciting new chapter for Docupace as we prepare to reorient to an independent position,” said Michael Pinsker, founder, chief executive officer and president of Docupace. “We’d like to thank all of our clients for remaining by our side during this uncertain time. Our strategic direction toward private ownership will allow us flexibility in a quickly-changing marketplace and enable us to innovate as we work to transform the financial services industry.”
As previously reported by The DI Wire, the digital compliance and cyber security company received a significant investment from RCAP in September 2014, as part of RCAP becoming a majority shareholder in the company.
Following the investment, Docupace expanded its offerings with financial technology products, including cyber security services, compliant straight-through processing and digital alternative investment processing. During this time, Docupace operated as an independent business unit under the executive leadership of Pinsker.
According to the company, repurchasing the RCAP interests allows the firm to focus on growth in the marketplace with the implementation of its straight-through processing technology, enabling broker-dealers to digitally process all aspects of their business, including document and client management, payment processing, mailings, e-signature, etc., securely and in compliance with SEC/FINRA regulations.
Pinsker and the existing Docupace executive management team will continue to lead day-to-day operations and there will be no changes to staff, operations, processes or client relationships during the transition. The transaction is expected to close sometime in May.
RCAP is in the final stages of completing its pre-arranged Chapter 11 bankruptcy following a series of scandals involving affiliated companies controlled by Nicholas Schorsch. The bankruptcy is expected to conclude next month.
Based in Los Angeles, Docupace is a provider of secure and federal and state law compliant electronic processing platforms for financial institutions and the wealth management industry. The company pioneered and implemented SEC/FINRA compliant straight-through processing technology for the financial services industry. As a provider of cyber security services, Docupace also helps broker-dealers and financial services firms become cyber secure by assessing vulnerabilities, correcting potential gaps, and providing ongoing monitoring.
