EFTA02491883

From: Richard Kahn <richardkahn12@gmail.com> Sent: Thursday, August 6, 2015 6:50 PM To: jeffrey E. Subject: APO Apollo Global takes stake in RCS Capital; company to refocus on retail brokerage Aug 6 2015, 14:35 ET I About: RCS Capital Corporation (RCAP) <http://seekingalpha.com/symbol/RCAP> Alpher <http://seekingalpha.com/author/sa-editor-stephen-alpher> , SA News Editor <http://seekingalpha.com/images/mail_icon.png> By: Stephen • CEO Michael Weil and CFO Brian Jones will be replaced at RCS Capital (RCAP <http://seekingalpha.com/symbol/rcap> -26.8%) once successors can be found. • Apollo Global (APO chttp://seekingalpha.com/symbol/apo> -1%) will purchase RCAP's wholesale distribution division for $25M, and - along with Luxor Capital Partners - invest another $37.5M in convertible preferred stock of RCAP. • RCAP's business will be refocused on Cetera Financial Group, with Cetera entering a strategic relationship with Apollo in which its sales force will sell Apollo products. • The RCS Capital Management services agreement will be terminated, with 3M shares issued to Luxor Capital and 2.6M shares issued to members of RCAP management as part of the termination. Apollo co-founder Marc Rowan and Anthony Civale - COO of Apollo Credit - will join the RCAP board. • The board also forms a committee to explore further options to enhance shareholder value. Richard Kahn HBRK Associates Inc. New York, NY 10022 1 EFTA_R1_01614306 EFTA02491883