Debevoise & Plimpton LLP is advising Apollo Global Management, LLC (together with its consolidated subsidiaries, “Apollo”) in its acquisition of a majority interest in a new company, AR Global Investments, LLC (“AR Global”), that will own a majority of the ongoing asset management business of AR Capital, a leading asset management firm focused on providing income solutions for retail investors. Debevoise is also advising Apollo in its acquisition of RCS Capital’s (“RCS”) wholesale distribution business for $25 million in cash, which will become part of AR Global, in Apollo’s entrance into a strategic relationship with RCS Capital’s retail advice business, Cetera Financial Group (“Cetera”), and in Apollo’s purchase of $25 million in newly issued preferred stock in RCS.
The AR Global transaction includes $378 million of upfront consideration, split between $200 million of cash and $178 million of Apollo equity, plus future performance-related contingent consideration.
AR Capital, founded in 2006, currently manages approximately $19 billion of alternative assets across a variety of real estate investment trusts, business development companies, mutual funds and other partnerships.
RCS Capital Corporation (NYSE: RCAP) is a full-service investment firm expressly focused on the individual retail investor. With operating subsidiaries including retail advice services, wholesale distribution, investment banking, capital markets, investment research, investment management and crowdfunding, RCS Capital's business is designed to capitalize, support, grow and maximize value for the investment programs it distributes and the independent advisors and clients it serves.
Apollo is a leading global alternative investment manager with offices in New York, Los Angeles, Houston, Chicago, Bethesda, Toronto, London, Frankfurt, Luxembourg, Madrid, Mumbai, Delhi, Singapore, Shanghai and Hong Kong. Apollo had assets under management of approximately $162 billion as of June 30, 2015 in private equity, credit and real estate funds invested across a core group of nine industries where Apollo has considerable knowledge and resources.
The Debevoise team was led by partners Gregory V. Gooding and Jeffrey J. Rosen, and included partners Kenneth J. Berman, Lawrence K. Cagney, Jennifer L. Chu, Peter A. Furci, Meir D. Katz, counsel Brandon C. Gruner and Lee A. Schneider, and associates Peter Clarke, Gregory T. Larkin, Kirkland Alexander Lynch, David A. Martinez, Pankita D. Naik, Maxine Sharavsky, Julie Baine Stem and Oleg S. Zakatov.
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