As hot as liquid alts are, most can't compete against the bull market
'The only thing that's working right now is the S&P'
Credit: RSS for Investments
Rabu, 31 Desember 2014
Selasa, 30 Desember 2014
Nicholas Schorsch resigns from RCAP, boards of AR Capital affiliates
Nicholas Schorsch resigns from RCAP, boards of AR Capital affiliates
New chairman Auerbach says change allows company to simplify governance, minimize 'perceived' conflicts, cut complexity
Dec 30, 2014 @ 11:13 am
By Bruce Kelly
+ Zoom
(Bloomberg News)
Two months after an accounting scandal rocked his REIT empire, Nicholas Schorsch, architect of a $40 billion brokerage and real estate investment trust empire, has resigned from the boards of public companies he once controlled.
Most notably, RCS Capital Corp., known by its ticker RCAP, said Tuesday said that Mr. Schorsch had resigned as executive chairman and gave up his seat on the board of directors. His partner, Bill Kahane, also resigned from the board of RCAP. In addition, Mr. Schorsch resigned as chairman and CEO of a publicly traded REIT, New York REIT Inc., and from the boards of 11 nontraded REITs and other direct investment programs sponsored by AR Capital, formerly known as American Realty Capital or ARC.
Replacing Mr. Schorsch as RCAP chairman is Mark Auerbach, who has been the lead independent director of the firm since last February.
(More: Nicholas Schorsch's REIT empire is under siege)
Mr. Schorsch's resignation from RCAP means that he has lost control of the second of the three pillars of the empire that he controlled until recently. Two weeks ago, he resigned as chairman of American Realty Capital Properties Inc., known as ARCP. He remains chairman and CEO of AR Capital
"This important transition allows us to simplify our governance structure, reduce complexity and minimize perceived conflicts of interest among related parties and affiliates,” Mr. Auerbach said in a statement from RCAP. “The board and I look forward to continuing to work closely with [CEO] Mike Weil and the entire RCS Capital management team as we execute RCS Capital's strategy for growing revenues, expanding profitability, maintaining corporate governance best practices and enhancing overall shareholder value.”
In a statement released by AR Capital, Mr. Schorsch said: “Because of the solid, highly skilled management teams which we have built, this is the right time to make these changes.”
Together, Mr. Schorsch and Mr. Kahane remain the largest shareholders of RCAP.
Mr. Schorsch has been under siege since the end of October, when it was announced that ARCP, the giant listed REIT he controlled, had intentionally not corrected a $23 million accounting error in the first half of this year. Two executives, including one of his longtime partners, Brian Block, resigned.
At first, Mr. Schorsch downplayed the accounting error, reassuring broker-dealers that the accounting issues at ARCP were isolated. But a surge of events undermined the status of the freewheeling REIT czar beloved by many financial advisers for quick liquidity events of nontraded REITs sponsored by AR Capital, a private company.
The shares of ARCP and RCAP plummeted on the news. Broker-dealers and clearing firms in November suspended sales of AR Capital products, eroding revenues for RCAP from wholesaling fees. Then, just two weeks ago, one of the executives who resigned from ARCP, Lisa McAlister, filed a defamation lawsuit that alleged that Mr. Schorsch ordered her and other executives to change quarterly financial results.
One analyst was sanguine about the changes at RCAP.
“We view the announcement positively as it further divorces the implicit overhang on RCAP from the [legacy] association with ARCP — as there is no economic relationship between the firms,” wrote William Katz, an analyst with Citigroup Global Markets Inc.
“First, the changes to the board further increase the number of independent directors and reduces the complexity and perceived conflicts of interest among related parties,” Mr. Katz wrote. “Second, it increases the path to simplifying the franchise which should expand the [price/earnings] multiple. Third, RCAP is moving relatively quickly to address investor concerns and we expect further action to come with the external management structure likely to be reviewed over time.”
In late morning trading in New York Tuesday, RCAP shares were up 65 cents, or 5.75%, at $11.95, well off their 52-week low of $8.94.
Latest from InvestmentNews
Get Daily News & Intel
Breaking news and in-depth coverage of essential topics delivered straight to your inbox.
Connect with Us
Follow InvestmentNews
Financial Adviser Group
Retirement Income Summit Group
Alternative Investments Conference
40 Under 40
Like us on Facebook
Like our fan page to receive the latest news and opinion from InvestmentNews.
Latest News & Opinion
Subscribe to this RSS feed to receive the latest news and opinion from InvestmentNews.
Credit: RSS for Investments
Cheap oil is drawing bargain hunters to energy ETFs
Cheap oil is drawing bargain hunters to energy ETFs
Plus: Finding value under the hood of hedge funds, how to talk like a Wall Street guru, and get insurance or get ready for Obamacare taxes
Dec 30, 2014 @ 12:01 am
- Bargain hunters pour into energy sectors, betting big that oil prices will bounce back up. 'The picture is not as bleak as it may seem.'
- Hedge funds might be closing in on a sixth-straight year of lagging the S&P 500, but that doesn't mean they aren't capable of uncovering some powerful investment opportunities. Nine hedge fund stocks that have seen significant institutional buying.
- You, too, can talk just like a Wall Street pundit simply by saying common phrases that don't mean anything. 'Cautiously optimistic, more buyers than sellers, buy on weakness, the trend is your friend'
- Welcome to 2015 and the first big wave of Obamacare tax penalties. Get health insurance or deal with the IRS. If you can't prove you were insured in 2014, you'll face fines unless you qualify for one of about 30 exemptions.
0
Comments
What do you think?
Latest from InvestmentNews
Get Daily News & Intel
Breaking news and in-depth coverage of essential topics delivered straight to your inbox.
Connect with Us
Follow InvestmentNews
Financial Adviser Group
Retirement Income Summit Group
Alternative Investments Conference
40 Under 40
Like us on Facebook
Like our fan page to receive the latest news and opinion from InvestmentNews.
Latest News & Opinion
Subscribe to this RSS feed to receive the latest news and opinion from InvestmentNews.
Credit: RSS for Investments
Senin, 29 Desember 2014
From big rallies to fallen (bond) kings, we saw it all in 2014
From big rallies to fallen (bond) kings, we saw it all in 2014
Liquid alts and robo-advice emerge as major stories
Credit: RSS for Investments
MOVIECLIPS Trailers: "Top 10 Movies of 2014 - Movies With Meg (2014) HD" dan video lainnya
Sabtu, 27 Desember 2014
Aktivitas baru di video Anda: Ayu Ting Ting - Doom Machale / Mahabharata Show / ANTV 3 Oktober 2014
|
Jumat, 26 Desember 2014
Video populer oleh Rising Star Indonesia: "Indah Nevertari "Come N Love Me" - Grand Final Rising Star Indonesi..."
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
