Goldman Sachs Agrees to Acquire LCN Capital Partners for Up to $410 Million
Goldman Sachs has agreed to acquire LCN Capital Partners, a real estate investment manager, for up to $410 million. The deal, announced Tuesday, follows Goldman's $2.25 billion agreement to buy ETF provider NEOS last week. LCN specializes in sale-leaseback, build-to-suit, and net lease investments across North America and Europe.
Goldman Sachs has agreed to acquire real estate investment manager LCN Capital Partners for up to $410 million, the bank said Tuesday.
The transaction, expected to close by the end of the year, marks the second deal worth nine figures or more that Goldman has announced in the past week. Last Wednesday, the bank said it would buy exchange-traded fund provider NEOS for $2.25 billion.
“LCN’s differentiated platform is highly attractive for our Asset & Wealth Management clients who want diversified sources of returns and offers corporate clients innovative capital solutions,” Goldman CEO David Solomon said in a statement Tuesday. “Their focus complements our private real estate team’s broad 30-year track record and will expand our ability to serve our insurance, institutional, and wealth client segments.”
LCN originates, negotiates, invests in, and manages sale-leaseback, build-to-suit, and net lease investments across North America and Europe. Goldman and LCN describe these capital segments as “predictable, inflation-protected and tax-advantaged” opportunities worth trillions of dollars.
As of June 30, LCN had approximately $3 billion in assets under supervision, primarily from institutions, insurers, and high-net-worth individuals. LCN said its investment funds have delivered an average annual net cash-on-cash return of 10.8% since 2011.
“Our team, our strategy, and our commitment to our partners, both capital and corporate, remain unchanged — what changes is the scale of our ambition,” said LCN co-founder Edward LaPuma. “By combining LCN’s origination network and investment discipline with Goldman Sachs’ unrivaled corporate relationships, global distribution, and client experience teams, we can better serve our investing and tenant partners at a scale no independent firm could match.”
LaPuma and fellow LCN co-founder Bryan York Colwell, along with the rest of LCN’s team, will join Goldman Sachs Asset Management’s real estate business once the transaction closes.
The deal’s value is split between an upfront consideration of roughly $260 million and a deferred portion of up to $150 million, contingent on achieving certain long-dated performance targets and service commitments. Approximately 80% of the total consideration is payable in equity, the companies said.