LCN Capital Partners has raised over $1.35 billion for its third pair of North American and European sale-leaseback funds. The funds’ backers include pension funds, insurance companies, and foundations, as well as multi-family offices and high-net worth individuals.
NEW YORK–(BUSINESS WIRE)–LCN Capital Partners (“LCN”), a private real estate investment firm and recognized leader in the primary corporate sale-leaseback and built-to-suit markets, today announced that it has raised, on a U.S. Dollar basis, over $1.35 billion in equity commitments for its third pair of sale-leaseback funds. Its U.S. Dollar denominated, LCN North American Fund III L.P., and Euro denominated, Luxembourg-domiciled LCN European Fund III SLP (collectively, the “Funds”), exceeded targets of $500 million and €500 million, closing at hard caps of $635 million and €600 million, respectively.
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. Importantly, the credit-based leases negotiated, coupled with the security of corporate real estate ownership, create an investment that produces inflation-protected quarterly distributions. Moreover, the attractive risk-return asset is insulated from the mark-to-market volatility that public market participation and other direct real estate ownership often experience.
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. 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.”
“With an Investment Committee of the two founders, each directly engaged on LCN’s transactions, LCN can provide the certainty and speed of closing, handle deal complexity, and preserve confidentiality for our corporate tenant-clients. 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, some for multiple transactions,” said Bryan York Colwell, Co-Founder and Managing Partner of LCN. “Since inception 10 years ago, LCN has distinguished itself as a reliable, long-term capital partner for our global tenant-clients who are seeking alternate liquidity sources to effectively manage their businesses.”
LCN North American Fund II L.P., and LCN European Fund II SLP closed in 2017 with approximately $750 million in capital commitments, and LCN North American Fund, L.P., and LCN European Fund FCP-SIF closed in 2014 with approximately $450 million in capital commitments.
About LCN Capital Partners
Founded in 2011 by Edward V. LaPuma and Bryan York Colwell, on a U.S. Dollar denominated basis, LCN has assets under management in excess of $5 billion across its three U.S. Dollar denominated funds and three Euro denominated funds. The LCN team has collectively completed more than 250 sale-leaseback and build-to-suit investments exceeding $12 billion in cost. Headquartered in New York, NY, LCN also has offices in London, Amsterdam, Cologne and Luxembourg.
LCN Capital Partners is a recognized leader in the primary sale-leaseback and build-to-suit markets. In these primary markets, investments and leases are originated and negotiated directly with the corporate users of mission critical real estate. LCN delivers a long-term solution for its tenant-clients by providing a non-bank capital resource, efficient monetization of on-balance sheet real estate, continued operational control of key assets, enhanced financial metrics, and potential tax benefits. LCN’s investing partners benefit from the long-term and inflation protected distributions that the LCN Funds supply. For more information, please visit: https://www.lcnpartners.com.