US private real estate investment firm LCN Capital Partners has raised €600 mln for its third European sale-and-leaseback fund, the Euro-denominated, Luxembourg-domiciled LCN European Fund III.
The fundraising amount exceeded the fund’s target of €500 mln, LCN said. The announcement comes in tandem with LCN’s closing of its third US fund, LCN North American Fund III, which raised $635 mln exceeding its target of $500 mln.
The funds received capital commitments from global institutions, including pension funds, insurance companies, and foundations, as well as multi-family offices and high net worth individuals located across three continents and nine countries. The funds also received ‘re-up’ capital commitments from 100% of LCN Funds II institutional partners.
‘Our third pair of distinct sale-leaseback funds are LCN’s largest raised to-date, having closed at their hard caps despite the disruption of Covid-19,’ said Edward LaPuma, co-founder and managing partner of LCN. ‘In order to properly invest the capital entrusted to us by our partners, we have continued to develop our existing team, expanded our origination reach by adding offices around the globe, and are currently recruiting for various new positions.'
LaPuma added: 'We believe that we are well positioned to identify and capitalize on the security, attractive risk-return, and fixed income-like attributes that our hybrid investment provides. We are humbled by the strong support of our original investing partners and welcome our new investing partners to Funds III, which are already significantly invested across North America and Europe.’
The funds continue LCN’s hybrid strategy of originating and structuring primary market sale-leaseback and build-to-suit investments directly with corporate owner-occupants across all industry sectors and commercial property types in North America and Europe.
LCN North American Fund II and LCN European Fund II closed in 2017 with $750 mln in capital commitments, and LCN North American Fund and LCN European Fund FCP-SIF closed in 2014 with $450 mln in capital commitments.
Founded in 2011 by LaPuma and Bryan York Colwell, LCN has assets under management in excess of $5 bn across its three US dollar denominated funds and three euro denominated funds. Headquartered in New York, LCN also has offices in London, Amsterdam, Cologne and Luxembourg.
