Shakeup in senior management of AR Capital products

Shakeup in senior management of AR Capital products
President of BDCA, company at center of Galvin complaint, is removed; others step down
NOV 25, 2015
The president of the Business Development Corporation of America, or BDCA, was removed amid a shakeup in the leadership of two of AR Capital's alternative investment products. On Friday, Robert Grunewald “was removed from his position as president, chief investment officer and chief operating officer of” BDCA effective immediately, according to a filing with the Securities and Exchange Commission. BDCA is the AR Capital nontraded business development company that is at the center of an administrative complaint filed earlier this month by Massachusetts Secretary of the Commonwealth William Galvin. The Massachusetts lawsuit alleges that Realty Capital Securities, a wholesale brokerage that helped market AR Capital products, fraudulently cast shareholder proxy votes. TWO PROXY VOTES The complaint focuses on two proxy votes for BDCA this year, at its June annual meeting and a special September meeting. AR Capital is owned by Nicholas Schorsch and his partner William Kahane. Mr. Schorsch is also a principal shareholder in Realty Capital Securities' parent, RCS Capital Corp. Mr. Grunewald did not immediately respond to a request to comment over LinkedIn. James Fisher, a BDCA managing director of middle market investing, is replacing Mr. Grunewald as president and chief operating officer. Meanwhile, Global Net Lease Inc., a publicly traded real estate investment trust sponsored by AR Capital that listed earlier this year, on Friday saw its president and chief investment officer, Andrew Winer, resign, according to an SEC filing. Mr. Winer “stepped down by mutual agreement with the company to pursue other opportunities.” Likewise, Patrick Goulding, the REIT's chief financial officer and treasurer “stepped down” to pursue other opportunities, according to an SEC filing. An AR Capital spokesman, Jesse Galloway, did not return a call on Monday to comment.

Latest News

Trump greenlights alternative investments in 401(k) accounts – Industry reacts
Trump greenlights alternative investments in 401(k) accounts – Industry reacts

The president signed an executive order late Thursday which he says will broaden choice

After Muni bond fund blow up, broker-dealers Osaic and Stifel Nicolaus face questions
After Muni bond fund blow up, broker-dealers Osaic and Stifel Nicolaus face questions

Plaintiff's lawyers are eying both broker-dealers for potential client complaints.

Retail investors split on AI's place in financial advice
Retail investors split on AI's place in financial advice

Survey research reveals just three-tenths trust AI-generated recommendations, bolstering the case for lasting human relationships with advisors.

Advyzon and SS&C roll out wealth tech platform updates for advisors
Advyzon and SS&C roll out wealth tech platform updates for advisors

Advyzon has launched a new hub for professionally managed model portfolios, while SS&C unveiled a unified suite of wealth solutions under the Black Diamond banner.

Barred investment advisor, former CNBC pundit sentenced to five years for fraud
Barred investment advisor, former CNBC pundit sentenced to five years for fraud

Former LA-based advisor James Arthur McDonald Jr. is facing federal prison time for defrauding investors out millions of dollars in a Ponzi-like scheme after a failed anti-America bet.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.