The non-traded REIT, created by Nicholas Schorsch, said it will continue to manage its $19 billion of investment programs. However, AR Capital “does not intend to register any new product offerings nor pursue any of our existing offerings” with the start of 2016, because recent Department of Labor fiduciary standard regulatory changes, as well as a FINRA directive on valuation measures made the investment outlook “opaque,” the company said.
"Until there is greater clarity, we have decided to sit this one out,” founding partner William Kahane said in the company’s release.
The company has also directed Realty Capital Securities to discontinue all proxy activities on behalf of all AR Capital sponsored companies.
AR Capital, which manages public and private real estate investments, among other alternative investments, said it will continue to accept subscriptions for its open investment programs through the end of the year.
Earlier in November, AR Capital and Apollo Global Management terminated plans that would have seen the alternative-asset manager run by Leon Black buy the bulk of AR Capital’s holdings, according to Bloomberg.