Untangling Nicholas Schorsch's vast web of businesses

The REIT czar's empire is broken down in this "simple" visual covering all entities under his purview
SEP 23, 2014
Nicholas Schorsch's vast web of businesses is untangled in this "simple" visual of all entities under his purview

American Realty Capital

A private sponsor and manager of alternative investment, particularly nontraded REITs

Known as ARC, this full-service investment advisory firm is by far the largest current sponsor of nontraded REITs and other illiquid alts.

Six large, ARC-sponsored nontraded REITs and BDCs that have raised equity in 2014:

  • Business Development Corp of America: total assets of $1.96 billion
  • Phillips Edison - ARC Shopping Center REIT Inc.: $1.87 billion
  • American Realty Capital Global Trust Inc.: $1.76 billion
  • American Realty Capital Healthcare Trust II Inc.: $1.2 billion
  • American Realty Capital - Retail Centers of America Inc.: $391.4 million
  • American Realty Capital Daily Net Asset Value Trust Inc.: $32.5 million

RCS Capital Corp. (RCAP)

A publicly traded securities firm

Cetera Financial Group

When all deals are completed, will have 9,700 reps providing retail financial advice on about $214B in current asset.

  • First Allied Holdings Inc.
  • Investors Capital Holdings Ltd.
  • Summit Financial Services Group Inc.
  • Cetera Financial Holdings Inc.
  • J.P. Turner & Co.
  • VSR Financial Services (deal pending)
  • Girard Securities Inc. (deal pending)

American Realty Capital Properties Inc. (ARCP)

A listed, net-lease real estate investment trust

$21.3B in total assets. Also manages nontraded REITs sponsored by Cole Capital with about $5B in assets.

Significant M&A

  • American Realty Capital Trust III Inc.
  • 447 properties from GE Capital Corp. affiliates
  • 196 properties owned by Fortress Investment Group
  • 67 companies from Inland American Real Estate Trust Inc.
  • CapLease Inc.
  • American Realty Capital Trust IV Inc.
  • Cole Real Estate Investments Inc.
  • 500 Red Lobster restaurant properties

Other businesses

Mr. Schorsch's empire doesn't stop at the entities listed above. Two others of note:

  • New York REIT Inc. (NYRT): Formerly a nontraded REIT, it listed in April on the New York Stock Exchange. Mr. Schorsch is CEO and chairman of the board. Total assets: $1.8 billion.
  • American Realty Capital Healthcare Trust Inc. (HCT): Mr. Schorsch has been the executive chairman of the board of the publicly traded REIT since March 2014. The company listed in April, and in June it announced it was being acquired by giant health care REIT Ventas Inc. in a stock and cash transaction valued at $2.6 billion, or $11.33 per share. Total assets: $2.1 billion.
Sources: SEC filings, Morningstar, Robert A. Stanger & Co. Inc., company presentations and company websites

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