LCN Capital Partners has raised at least $142.45 million for its North America Sale-Leaseback Fund, according to documents filed with the US Securities and Exchange Commission. The firm is targeting $250 million for the vehicle, which is being raised alongside a Luxembourg-registered European vehicle also targeting €250 million. The filing represents a first close held earlier this month, with the European-focused vehicle also holding a simultaneous first close on €60 million.
The firm, which maintains offices in London and New York, began marketing both stand-alone vehicles last year. Its investor base includes a multi-national insurance company, a corporate pension plan and several family offices.
LCN targets credit-focused investments in corporate real estate. The firm has a sale-leaseback strategy, in which properties are purchased from distressed companies and then leased back under long-term contracts. Co-founders Edward LaPuma and Brian Colwell are executive directors of the fund.
“We believe this market opportunity is increasingly compelling as: corporate boards demand greater capital efficiency in their businesses to unlock real asset capital for growth and expansion; alternative non-bank finance sources broaden in acceptance and importance; and capital markets and traditional lending sources for middle-market companies remain contracted while the volume of maturing corporate debt expands,” according to the firm’s website.
Prior to launching LCN in 2011, LaPuma led WP Carey’s international business, where he oversaw two REITs totaling $2.7 billion. Colwell previously worked as a global group head at ABN Amro Bank. He also worked in Goldman Sachs' investment banking/M&A division.