(Bloomberg) -- Apollo Global Management and AR Capital terminated plans that would have seen the alternative-asset manager run by Leon Black buy the bulk of real estate investor Nicholas Schorsch’s holdings.

Apollo and AR Capital mutually agreed to cancel the transaction, which would have invested in a new entity called AR Global Investments, the companies said in a statement Monday.

AR Global Investments would have absorbed about $19 billion now overseen by Schorsch, with Apollo holding a 60 percent stake in the new company, the New York-based firm said Aug. 6. Apollo agreed to pay $200 million in cash and $178 million in stock for the stake in AR Global Investments, according to a presentation on the firm’s website.

Apollo also said at the time it would invest in RCS Capital Corp., a network of brokers that sell Schorsch’s real estate investment trusts to retirees and other individual investors. As part of the termination of the deal, AR Capital is purchasing from Apollo $25 million of RCS Capital preferred stock for $25.6 million, according to the statement on Monday.

Schorsch’s holdings were thrown into disarray in October last year when one of his REITs disclosed that it had accounting errors that were intentionally concealed.

Apollo had assets under management of about $162 billion as of end September, according to its website. AR Capital manages about $19 billion of alternative assets across REITs, business development companies, mutual funds and other partnerships.

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