Aug 18 (Reuters) - Goldman Sachs will buy commercial real estate investor LCN Capital Partners for as much as $410 million, the Wall Street bank said on Tuesday.
Goldman will pay about $260 million upfront for LCN, with a further potential payout of up to $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 $2.25 billion.
The acquisitions also come weeks after Goldman signaled 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 monetize 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.
Reporting by Pragyan Kalita in Bengaluru; Editing by Shreya Biswas
Source: Reuters