AR Capital Announces Suspension of Capital Raising Activities for Certain of its Investment Programs Due to Regulatory and Market Uncertainty

16 Nov, 2015, 06:00 ET from AR Capital, LLC

NEW YORK, Nov. 16, 2015  /PRNewswire/ -- AR Capital, LLC ("AR Capital"), a leading alternative asset manager, today announced it will suspend the acceptance of new subscriptions to certain of its current investment programs effective December 31, 2015, as a result of regulatory and market uncertainty affecting capital raising for both new and existing offerings in the direct investment industry. These programs include: Business Development Corporation of America II, ARC Healthcare Trust III, New York City REIT II, ARC Hospitality Trust and ARC Global Trust II. AR Capital will continue to manage its $19 billion of investment programs.  

"The proposed and pending regulatory changes suggested by the Department of Labor fiduciary standard as well as the valuation measures prescribed by FINRA's 15-02 directive pertaining to the alternative investment industry remain largely opaque in terms of their implications and consequences for the alternative investment industry," explained William M. Kahane, the Founding Partner of AR Capital. "Until there is greater clarity, we have decided to sit this one out. As a result, we do not intend to register any new product offerings nor pursue any of our existing offerings after December 31, 2015. Naturally, as the government's position becomes clearer, we may reconsider our present posture on these issues."

"As the largest, well capitalized sponsor of non-traded REITs and BDCs in the direct investment industry, we will focus our efforts for the time being exclusively on managing our investment programs for the benefit of our shareholders, standing firmly by our "investor first" philosophy, and focusing on generating strong, risk-adjusted returns for our investors. This is the correct decision, we believe, to protect both current and future shareholders while maintaining our position as an industry thought leader."

AR Capital will continue to accept subscriptions for its open investment programs through year-end 2015, and will allow subscriptions in process to be delivered for up to 45 days after the suspension. The Dividend Reinvestment Program ("DRIP") and the Share Repurchase Plan ("SRP") will remain in place for all investment offerings. AR Capital will continue to service its existing investors currently resident in its investment programs.

AR Capital also announced that it has, effective immediately, directed Realty Capital Securities to discontinue all proxy activities on behalf of all AR Capital sponsored companies, in light of the recent action taken by the State of Massachusetts.

About AR Capital

Founded in 2006, AR Capital is a full-service investment management firm providing advisory services to retail and institutional investors. AR Capital is an active sponsor and manager of public and private real estate investments, business development companies, and other investment products. Collectively, AR Capital's senior team of seasoned professionals manages over $19 billion of assets. For more information, visit www.americanrealtycap.com.

Important Notice

The statements in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different. In addition, words such as "will," "should," "may," "anticipate," "believe," "expect" and "intend" indicate a forward-looking statement, although not all forward-looking statements include these words.

Investor Inquiries:

Jonathan Keehner

Mahmoud Siddig

Joele Frank, Wilkinson Brimmer Katcher

jkeehner@joelefrank.com

msiddig@joelefrank.com

(212) 355-4449


Nicholas A. Radesca

Chief Financial Officer

AR Capital, LLC

nradesca@arlcap.com

(212) 415-6559

 

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SOURCE AR Capital, LLC



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