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Bailey McCann, Opalesque New York:

Hatteras Funds, a boutique alternatives-focused asset manager has signed a letter of intent to repurchase itself from battered broker RCS Capital. RCS is currently seeking a buyer and trying to raise funds after a botched deal with Apollo Global Management involving the sale of $19 billion in real-estate assets from founder RCS Founder Nicholas Schorsch.

RCS Capital disclosed accounting irregularities last year, and has since been trying to sell. Hatteras Management Group will repurchase its business from RCS for $5.5 Million. Hatteras will become an employee-owned alternative investment boutique offering a handful of liquid alternative products to retail investors.

RCS acquired Hatteras on June 30, 2014.

Hatteras Funds has continued to operate as an independent reporting segment over the past 16 months, and CEO David Perkins tells Opalesque the repurchase agreement will allow the firm to get back to its roots. "We want the old Hatteras back," Perkins said. "We want to return to our culture and be a boutique firm offering unique products. RCS wanted to grow very big, very fast and that's just not our culture."

There will be no changes to Hatteras Funds’ leadership and portfolio management teams as a result of the transaction. The transaction is still subject to certain shareholder approvals, but Perkins says they expect to be through the approval process and operating as an independent firm sometime in the first quart......................

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