Goldman Sachs has agreed to acquire LCN Capital Partners, a triple net lease investment manager with approximately $3 billion in assets under supervision, in a transaction that could be worth up to approximately $410 million.
The deal includes approximately $260 million of upfront consideration plus up to approximately $150 million of deferred and contingent consideration tied to long-dated performance targets and service commitments.
Approximately 80% of the total consideration will be paid in Goldman Sachs equity.
The transaction is expected to close by the end of 2026, subject to regulatory approvals and customary closing conditions.
LCN specializes in sale-leaseback, build-to-suit and triple net lease investments across North America and Europe.
The company manages capital primarily for institutional investors, insurers and high-net-worth individuals.
Upon completion of the acquisition, LCN co-founders Edward V. LaPuma and Bryan York Colwell and the broader LCN team will join the Real Estate business within Goldman Sachs Asset Management.
Founded in 2011, LCN has raised 10 investment funds focused on opportunities that combine corporate credit characteristics with real estate.
Its strategy is designed to provide investors with predictable, inflation-protected and tax-advantaged income while also offering potential upside.
For corporate tenants, sale-leaseback transactions can provide an alternative source of capital by allowing companies to monetize owned real estate while continuing to occupy and operate the properties.
Goldman Sachs sees a substantial opportunity to expand LCN across additional products, investor groups and geographies.
The companies estimate that corporations own approximately $14 trillion of property on their balance sheets across North America and Europe.
Only a fraction of those properties are transacted annually through net lease structures, creating what Goldman Sachs and LCN see as a significant addressable market for sale-leaseback and build-to-suit transactions.
The acquisition will connect LCN’s existing corporate and developer relationships with Goldman Sachs’ Global Banking & Markets origination capabilities.
That combination could provide LCN with access to a broader pipeline of corporations seeking to unlock capital tied up in real estate.
Goldman Sachs also expects its global asset and wealth management distribution network to expand LCN’s investor base.
LCN currently has longstanding limited partner relationships spanning pensions, insurers, family offices and high-net-worth investors.
The company said its fully invested flagship funds have generated an average annual net cash-on-cash return of 10.8% since inception, based on LCN’s calculations as of March 31, 2026.
LCN also said its funds rank in either the first or second quartile among comparable closed-end real estate funds based on net multiple on invested capital and distributions to paid-in capital.
Investor demand for net lease strategies has been supported by the asset class’s contractual and long-duration income characteristics.
Sale-leaseback and build-to-suit investments can also provide inflation protection and tax-advantaged capital distributions, making them potentially attractive to institutional, insurance and individual investors seeking durable income.
Goldman Sachs said the acquisition will expand the firm’s more durable revenue streams and strengthen the investment products available across institutional and individual client segments.
The deal also complements Goldman Sachs’ existing private real estate platform.
Goldman Sachs Alternatives has more than $706 billion in total alternative assets, while its real estate business has invested more than $65 billion in capital since 2012.
Goldman Sachs Asset Management oversees more than $4 trillion in assets under supervision as of June 30, 2026.
LCN’s addition will provide the platform with a specialized triple net lease capability combining real estate investing with corporate credit underwriting and direct origination.
Goldman Sachs Global Banking & Markets served as financial advisor to Goldman Sachs.
Wachtell, Lipton, Rosen & Katz and DLA Piper served as Goldman Sachs’ legal counsel.
RBC Capital Markets served as financial advisor to LCN, while McDermott Will & Schulte served as legal counsel.
KEY QUOTES:
“LCN’s differentiated platform is highly attractive for our Asset & Wealth Management clients who want diversified sources of returns and offers corporate clients innovative capital solutions.”
“Their focus 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.”
David M. Solomon, Chairman and CEO of Goldman Sachs
“Our team, our strategy, and our commitment to our partners, both capital and corporate, remain unchanged. What changes is the scale of our ambition.”
“By combining LCN’s origination network and investment discipline with Goldman Sachs’ unrivaled corporate relationships, global distribution, and client experience teams, we can better serve our investing and tenant partners at a scale no independent firm could match, and become an industry leading platform in triple net lease investing.”
Edward V. LaPuma, Co-Founder of LCN Capital Partners
