Goldman Sachs buys LCN in deal worth up to $410M

Goldman Sachs has agreed to buy LCN Capital Partners for up to $410 million, adding about $3 billion in commercial real estate assets to its investment management business. Summary Goldman will pay $260 million upfront, with up to $150 million tied to future targets. About 80% of the acquisition price will be paid in Goldman Sachs stock. LCN manages sale-leaseback, build-to-suit, and triple-net lease investments across North America and Europe. The transaction is expected to close by the end of 2026, subject to regulatory approval. Goldman Sachs said in an Aug. 18 announcement that the transaction will bring LCN’s investment funds, corporate relationships, and real estate team into Goldman Sachs Asset Management. Goldman Sachs will pay most of the LCN price in stock Under the agreement, Goldman will provide about $260 million when the acquisition closes. LCN’s owners could receive another $150 million through deferred and conditional payments if the business meets long-dated performance targets and service commitments. Approximately 80% of the full consideration will consist of Goldman stock, according to the bank. The final amount could therefore remain below $410 million if the conditions governing the additional payment are not met. Expected to close by the end of 2026, the acquisition still requires regulatory clearance and must meet customary closing conditions. Goldman’s Global Banking and Markets division acted as the bank’s financial adviser, while Wachtell, Lipton, Rosen & Katz and DLA Piper provided legal advice. You might also like: Goldman Sachs to add Bitcoin, Ethereum ETFs in $2.25B Neos deal RBC Capital Markets advised LCN on the sale. McDermott Will & Schulte served as the real estate manager’s legal counsel. Based in New York, LCN was founded in 2011 by Edward V. LaPuma and Bryan York Colwell. Its investment team has more than 30 years of experience in triple-net lease transactions, according to Goldman. LaPuma, Colwell, and other LCN employees will join the real estate division within Goldman Sachs Asset Management after the purchase closes. The bank did not disclose whether LCN’s brand will remain in use or provide details about possible changes to its investment funds. “Our team, our strategy, and our commitment to our partners, both capital and corporate, remain unchanged — what changes is the scale of our ambition,” LaPuma said. LCN adds $3 billion in commercial property assets LCN had approximately $3 billion in assets under supervision as of June 30, with much of its capital supplied by institutions, insurance companies, and wealthy individuals. The firm operates in North America and Europe and has raised 10 investment funds since its creation. Its portfolio covers industrial sites, offices, retail properties, and buildings created for specific corporate uses.