NEW YORK CITY—Apollo Global Management and Nicholas Schorsch's AR Capital said Monday that they had mutually agreed to terminate a deal for Apollo to buy controlling interest in a newly formed company, AR Global Investments, that would have owned a majority of AR Capital's asset management business. In a separate but related deal, Apollo will now buy some, but not all, of the RCS Capital Corp. platform.

Both the AR Global and RCS deals were announced this past August. Apollo was to have paid $378 million in cash and stock for its 60% stake in AR Global and to have acquired RCS, which would have been part of the AR Global platform, for $25 million.

The AR Global deal would have given Apollo access to a market segment that sees more than 1.2 million retail investors include non-listed REITs and business development corporations in their portfolios, and would have more than doubled its real estate assets under management to $27 billion. In connection with the deal's termination, AR Capital will buy $25 million of Apollo-held preferred stock in RCS for $25.6 million.

Under the amended agreement, RCS will sell its wholesale distribution business, including Realty Capital Securities and Strategic Capital, to Apollo for $6 million in cash. The transfer agent and transaction management businesses of RCS, as well as "certain other employees," will not be part of the amended transaction, Apollo said Monday.

Apollo is partnering with the management team of the wholesale distribution business, led by Bill Dwyer and Louisa Quarto, respectively CEO and president of Realty Capital Securities, in this transaction. The amended transaction will no longer be conditioned on the closing of a transaction between Apollo and certain affiliates of AR Capital.

Schorsch was to have served as senior managing director of AR Global, while he and his partners at AR Capital were to have served on the AR Global board, along with Marc Rowan, co-founder and senior managing director of Apollo. In connection with the RCS deal, Rowan and Apollo's Anthony Civale both have resigned from the RCS board, effective immediately.

Separately, RCS said Monday it had signed a letter of intent to sell its liquid alternatives investment management platform to the Hatteras Funds management group for $5.5 million and the assumption of certain earn-out obligations. The company also reiterated that it had engaged Lazard Freres & Co. to assist in exploring strategic alternatives.