Goldman Sachs to buy LCN Capital Partners for up to $410 million

Goldman Sachs agreed to buy LCN Capital Partners, a private real-estate investment firm managing about $3 billion in assets, for up to $410 million in a deal that deepens its sale-leaseback and net-lease franchise.

"LCN's differentiated platform is highly attractive for our asset and wealth management clients who want diversified sources of returns and offers corporate clients innovative capital solutions," David M. Solomon, chairman and chief executive at Goldman Sachs, said.

Goldman will pay about $260 million upfront, with up to $150 million in deferred and contingent payments tied to long-term performance targets and service commitments. About 80 percent of the total consideration will be paid in stock. LCN, founded in 2011 by Edward V. LaPuma and Bryan York Colwell, has raised 10 investment funds and reports average annual net cash-on-cash returns of 10.8 percent since inception, with all funds ranking in the first or second quartile among closed-end real estate funds for net multiple on invested capital.

The transaction, expected to close by the end of 2026 subject to regulatory approval and closing conditions, adds a stable, contract-based income stream to Goldman's asset and wealth management unit as the bank seeks to reduce reliance on more volatile trading and investment banking revenue. LCN's co-founders will join Goldman Sachs Asset Management's Real Estate business with their team.

Goldman shares closed at $1,051.31 on Aug. 17, up 1.14 percent, keeping the bank among the better-performing large-cap financial names this year. The stock has risen 19.6 percent from an earlier reference point, with a market capitalization of about $302.64 billion as of Aug. 16.

The acquisition comes as commercial real estate markets face valuation pressure after a period of higher interest rates. Acquiring an experienced specialist like LCN may allow Goldman to pick up assets and capabilities at a time when competition is less intense and pricing is more favorable than during the prior low-rate era, potentially enhancing future performance fees and capital deployment opportunities in real assets. LCN operates across North America and Europe, originating and managing sale-leaseback, build-to-suit, and net lease investments for institutions, insurers, and high-net-worth individuals.

The deal also fits a broader push by large asset managers to expand private-market offerings. Blackstone and Brookfield have both built substantial real estate platforms, and Goldman's purchase of LCN adds a specialist in net-lease strategies that combine corporate credit and real estate — a niche serving institutions, insurers, and high-net-worth individuals.

For Goldman, the deal represents a bet that corporate tenants will continue to favor sale-leaseback structures to unlock capital tied up in real estate, even as borrowing costs remain elevated. The bank's corporate relationships give it a pipeline of potential tenants and investors that LCN could not reach as an independent firm, while LCN's origination network adds deal flow to Goldman's existing real estate platform. If the transaction closes as planned by year-end, Goldman's asset and wealth management division gains a fee-earning business with a 10.8 percent average annual cash-on-cash return track record across 10 funds.

The broader earnings environment supports Goldman's fee outlook. S&P 500 companies grew earnings per share 31 percent year over year in the second quarter of 2026, with AI infrastructure stocks contributing nearly half of that growth, according to Goldman's analysis. As companies build data centers and expand AI infrastructure, they rely on investment banks to arrange capital and structure deals, which can translate into higher fees for institutions like Goldman.

RBC Capital Markets served as financial advisor to LCN, with McDermott Will & Schulte providing legal counsel. Goldman Sachs Global Banking & Markets acted as financial advisor to Goldman, with Wachtell, Lipton, Rosen & Katz and DLA Piper as legal counsel.

This article is for informational purposes only and does not constitute investment advice.