LCN Capital Partners has raised over $750 million for its second European fund. LCN European Fund II’s limited partners include European and North American pension plans, insurance companies, foundations and ultra high-net worth family offices. FocusPoint Private Capital Group was the placement agent.
\New York – May 22, 2017 – LCN Capital Partners (“LCN” or the “Firm”), an investment management firm co-founded by former W.P. Carey senior executive, Edward V. LaPuma, and former Goldman Sachs senior executive Bryan York Colwell, announced today that it had successfully completed fundraising for its second set of funds. The $-denominated LCN North American Fund II, L.P., and €-denominated LCN European Fund II, SLP (“FundsII”) raised in excess of $750 million. This fundraise provides LCN with over $2.5 billion in aggregate additional purchasing power. LCN’s credit-focused, quarterly income-oriented strategy targets “primary market” corporate sale-leaseback and build-to-suit investments across North America and Europe.
Funds II achieved their targets with a well known and diversified institutional investor group including both European and North American pension plans, insurance companies, foundations, and ultra high net worth family offices.
“We are pleased to announce the final close of our second set of parallel $- and €-denominated funds at levels exceeding our targets. We about doubled the capital raise achieved by our first two funds, each now fully invested and making their 8th quarterly distribution,” stated Ed LaPuma. Mr. LaPuma added, “We have successfully built our sale-leaseback investment platform with offices in New York, London, and Luxembourg, and our investing-partners continue to seek attractive investment attributes that primary market corporate sale-leaseback ownership provides.” Sale-leasebacks are a hybrid of credit-based leases coupled with the security of real estate ownership creates the security of an inflation-protected quarterly income stream insulated from the mark-to-market volatility that direct real estate ownership often entails. Mr. LaPuma added,
“We appreciate the continuing strong support of original investing-partners and welcome our new investing-partners to Funds II which are already over 30% invested.”
Funds II continue LCN’s strategy of originating and structuring “primary market” traditional and build-to-suit sale-leaseback investments directly with corporate owner-occupants. Since its first set of Funds commenced investing, LCN has distinguished itself as a provider of liquidity as well as a reliable long term ongoing capital partner for its tenant-clients. LCN counts among its tenant-clients some of the largest global public companies and also privately owned concerns across North America and Europe. “With an Investment Committee of the two founders each engaged on LCN’s transactions, LCN can provide the certainty and speed of closing, handle deal complexity, and preserve confidentiality. These abilities have led some of the world’s best known corporate names to partner with LCN for their sale-leaseback and build-to-suit transactions” says Bryan York Colwell, Co-Founder/Managing Partner of LCN.
The LCN team has completed in excess of 250 sale-leaseback and build-to-suit investments exceeding $10 billion in cost, and currently has over $1.75 billion of property since launching its initial set of funds in 2013. LCN is headquartered in New York City, with offices in London and Luxembourg.
FocusPoint Private Capital Group acted as exclusive placement agent. Schulte, Roth & Zabel serves as fund counsel. Arendt & Medernach serves as Luxembourg counsel.
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About LCN Capital Partners
LCN Capital Partners, a private equity firm with offices in New York, London, and Luxembourg, pursues a single proven strategy: credit-focused investments in operationally critical corporate real estate across certain industry sectors and commercial property types in North America and Europe. LCN has in excess of $1.75 billion of property.
We believe this market opportunity is increasingly compelling as (1) corporate boards demand greater capital efficiency in their businesses to unlock real asset capital for growth and expansion, (2) alternative non-bank finance sources broaden in acceptance and importance, and (3) capital markets and traditional lending sources for middle market companies remain contracted while the volume of maturing corporate debt expands.
LCN seeks to provide (1) high quarterly distributions provided by long-term rental contracts which provide bond-like cash flows, (2) inflation protection based on contractual rent increases in addition to underlying real estate ownership, and (3) unique security given operationally-critical real estate ownership limits downside risks versus other corporate creditors both secured and unsecured.
LCN Capital Partners’ senior management team has unparalleled experience in corporate and real estate finance, having held senior leadership roles in investment banking, capital markets, asset management, and commercial real estate at the world’s preeminent firms. LCN Capital Partners is a natural extension of the Managing Partners’ prior experiences: the creation of an institutional and ultra-high net worth platform for global corporate sale leaseback investing. Co-founder
Edward V. LaPuma created and led W.P.Carey’s international businesses during his over 15-year tenure there, pioneering the sale-leaseback market in Europe as well as serving as president of two successful REITs of $2 billion and $700 million each. Co-founder Bryan York Colwell is a 17-year veteran of Goldman Sachs investment banking/M&A, and later served as a global group head at ABN Amro Bank.
About FocusPoint Private Capital Group
FPCG, LLC, d/b/a FocusPoint Private Capital Group is an independent capital-raising firm specializing in private capital markets focused on private equity, credit, real estate, real assets and opportunistic strategies, as well as direct transactions. FocusPoint is a FINRA regulated broker-dealer in the U.S. and is a member of SIPC. For more information, please visit www.fpcgllc.com.
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