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.
