Goldman Sachs is acquiring triple net lease real estate manager LCN Capital Partners for up to $410m (€354.2m) as the financial services firm seeks to expand its sale-leaseback platform and diversify offerings for its clients via its asset management arm.
Goldman Sachs said it has agreed to pay an initial $260m as well as up to approximately $150m in performance targets and service commitments, around 80% of which will be paid in equity.
Founded in 2011, LCN has raised 10 investment funds and manages approximately $3bn in assets under supervision, primarily for institutions, insurers and high-net-worth individuals.
The company specialises in sale-leaseback, build-to-suit, and triple net lease real estate strategies across North America and Europe.
David M Solomon, chairman and CEO of Goldman Sachs, said: “LCN’s differentiated platform is highly attractive for our asset and wealth management clients who want diversified sources of returns and offers corporate clients innovative capital solutions.
“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.”
Edward V LaPuma, co-founder of LCN Capital Partners, said: “Our team, our strategy, and our commitment to our partners, both capital and corporate, remain unchanged — what changes is the scale of our ambition.
“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 — and become an industry leading platform in triple net lease investing.”
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