Apollo Global Management, LLC (NYSE:APO) agreed to acquire 60% stake in AR Global Investments, LLC from AR Capital, LLC for approximately $880 million in cash and stock on August 6, 2015. The consideration includes $200 million of cash, 8.3 million of Apollo Operating Group units and a contingent earn-out payment of $500 million. Minimum earn-out of 40% will be paid in Apollo equity, with the remainder to be paid in cash and/or equity, at Apollo's discretion. In a related deal, Apollo Global agreed to acquire wholesale distribution business of RCS Capital which will be held by AR Global.

AR Global Investments Board will consist of six Apollo representatives, one of whom will be appointed Chairman, including co-founders Josh Harris and Marc Rowan, Anthony Civale, Stephanie Drescher, Martin Kelly and John Suydam. The four partners of AR Capital namely Peter Budko, William Kahane, Nicholas Schorsch and Michael Weil will also serve on the Board. William Kahane, AR Capital's Co-Founder and head of real estate investments, will serve as Chief Executive Officer of AR Global until a search is concluded to hire a new Chief Executive Officer after which he will serve as Chief Investment Officer of AR Global's real estate activities. Nicholas Schorsch will serve as Senior Managing Director of AR Global.

The deal is subject to regulatory and other customary closing conditions and is expected to close in the next 60 days. The deal is expected to be modestly accretive to Apollo's fiscal year 2016 economic net income and distributable earnings. Lazard Ltd. acted as financial advisor and Gregory V. Gooding and Jeffrey J. Rosen, Kenneth J. Berman, Lawrence K. Cagney, Jennifer L. Chu, Peter A. Furci, Meir D. Katz, Brandon C. Gruner, Lee A. Schneider, Peter Clarke, Gregory T. Larkin, Kirkland Alexander Lynch, David A. Martinez, Pankita D. Naik, Maxine Sharavsky, Julie Baine Stem and Oleg S. Zakatov of Debevoise & Plimpton LLP acted as legal advisors for Appolo Global. Charles Zehren of Rubenstein Associates, Inc. acted as public relations advisor for Apollo Global Management, LLC. Jonathan Keehner and Mahmoud Siddig of Joele Frank, Wilkinson Brimmer Katcher acted as public relations advisors for AR Capital. Lee Meyerson, Elizabeth Cooper, Ravi Purushotham, Spencer Sloan, Patrick Vergara, Larry Moss, David Teigman, Samantha Steinfeld, John Hart, Drew Purcell, George Davis, Rajib Chanda, Christopher Healey and Linda Nyberg of Simpson Thacher & Bartlett LLP acted as the legal advisors to AR Capital, LLC. Steven Lichtenfeld, Steven Fishman, Andrew Bettwy, Leslie Loffman, Joshua Miller, Kathy Rocklen, Timothy Donovan, Simon Sharpe, Michael Orenstein, Justin Alex and Elizabeth Monteleone of Proskauer Rose LLP acted as a legal advisors to AR Capital, LLC.

Apollo Global Management, LLC (NYSE:APO) terminated the acquisition of 60% stake in AR Global Investments, LLC from AR Capital, LLC on November 8, 2015.