Goldman Sachs to buy LCN Capital Partners in up to US$410 million deal
The deal marks the bank’s second acquisition in less than 10 days
Add BT as a preferred source
[NEW YORK] Goldman Sachs will buy commercial real estate investor LCN Capital Partners for as much as US$410 million, the Wall Street bank said on Tuesday (Aug 18).
Goldman will pay about US$260 million upfront for LCN, with a further potential payout of up to US$150 million tied to future performance targets and service commitments, the company said. About 80% of the consideration will be paid in stock.
“Their focus (LCN Capital Partners’) 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,” Goldman Sachs CEO David M Solomon said.
The deal marks the bank’s second acquisition in less than 10 days as it accelerates the expansion of its asset and wealth management business. Last week, it agreed to buy ETF provider Neos Investments for as much as US$2.25 billion.
The acquisitions also come weeks after Goldman signalled during its second-quarter earnings call that it would continue pursuing acquisitions to grow its asset and wealth management business.
LCN Capital Partners, founded by Edward V LaPuma and Bryan York Colwell in 2011, is a commercial real estate investor focused on sale-leaseback and triple-net lease investments.
A net-lease investor buys commercial real estate where a single tenant pays rent plus most or all property costs like taxes, insurance and maintenance.
The LCN deal gives Goldman a foothold in the growing sale-leaseback market, where companies monetise real estate assets while investors receive long-term rental income that can offer protection against inflation.
The deal is expected to close by the end of 2026. Goldman Sachs’ global banking and markets arm acted as its financial advisor, while LCN was advised by RBC Capital Markets.
LCN’s team, including co-founders Edward LaPuma and Bryan York Colwell, will become part of Goldman Sachs Asset Management’s real estate platform following the acquisition, the bank said. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
Father-and-son duo Raj Kumar and Kishin in exclusive due diligence to buy Scotts Square
When every phone becomes a satellite phone, what happens to Asia’s telcos?
Koh Brothers Eco Engineering faces up to S$57.6 million in potential legal liabilities
Too little, too late? Manila’s billion-dollar bid to ignite its sputtering EV industry
