Goldman Sachs agrees to buy LCN Capital Partners for up to $410 million

Goldman Sachs has agreed to acquire real estate investment manager LCN Capital Partners for a total value of up to $410 million. The bank announced the deal on Tuesday, noting that the transaction is expected to close by the end of the year. This acquisition represents the second nine-figure or higher deal that Goldman Sachs has announced within the past week, following its recent agreement to purchase exchange-traded fund provider NEOS for $2.25 billion.

The strategic move is designed to enhance the bank’s asset and wealth management capabilities. David Solomon, the chief executive officer of Goldman Sachs, stated that LCN’s platform offers attractive diversified return sources for clients. He added that the acquisition complements the private real estate team’s thirty-year track record and expands the firm’s ability to serve insurance, institutional, and wealth client segments with innovative capital solutions.

LCN Capital Partners specialises in originating, negotiating, investing in, and managing sale-leaseback, build-to-suit, and net lease investments across North America and Europe. The firm describes these capital segments as predictable, inflation-protected, and tax-advantaged opportunities. As of 30 June, LCN had approximately $3 billion in assets under supervision, primarily derived from institutions, insurers, and high-net-worth individuals. The company reported that its investment funds have achieved an average annual net cash-on-cash return of 10.8 per cent since 2011.

The financial structure of the deal includes an upfront consideration of roughly $260 million and a deferred portion worth up to $150 million. The deferred amount is contingent on meeting specific long-dated performance targets and service commitments. Approximately 80 per cent of the total consideration will be paid in equity. Edward LaPuma, a co-founder of LCN, said the partnership would allow the combined entity to serve investing and tenant partners at a scale that independent firms could not match. LaPuma and fellow co-founder Bryan York Colwell will join Goldman Sachs Asset Management’s real estate business along with the rest of the LCN team once the transaction is completed.