From the New York website: UPDATED, 5:35 p.m., August 6: Apollo Global Management is acquiring a majority stake in AR Global Investments, a new company representing a majority of scandal-hit American Realty Capital’s asset management business, Apollo announced.
The move will more than double the private equity giant’s real estate assets to around $27 billion.
Apollo, led by Leon Black, is buying the stake with $200 million in cash and $178 million and stock. AR Global will be governed by a newly-created board of directors that will include four American Realty Capital partners — among them Nicholas Schorsch, who will serve as the company’s senior managing director, and William Kahane, who will serve as interim CEO and chief investment officer of AR Global’s real estate activities.
AR Capital currently manages approximately $19 billion in assets across a variety of investment platforms including real estate investment trusts, according to Apollo. The deal includes the Michael Happel-led New York REIT, an Apollo spokesperson told The Real Deal, and will increase Apollo’s total assets under management to $182 billion.
AR Capital’s spin-offs include American Realty Capital Properties, the Glenn Rufrano-led firm now known as VEREIT. That entitity is now completely independent of AR Capital and was not part of the Apollo deal, though it’s also facing backlash for its former ties to the Schorsch empire.
Correction: A previous version of this story said New York REIT was not part of the deal.