LCN raises $750m across two credit funds

The North America and European funds are already more than 30% invested.

LCN Capital Partners has closed two parallel North American and European funds on a total of more than $750 million, the firm said on Monday.

LCN North America Fund II and LCN European Fund II surpassed their fundraising targets, co-founder Ed LaPuma said in a statement.

The New York-based private equity firm attracted capital from pension plans, insurance companies, foundations, and high-net-worth family offices on both sides of the Atlantic for the funds, the statement read.

The funds originate credit as part of sale-leasebacks, in which properties are purchased from distressed companies and then leased back at long term contracts, and “built-to-suit” real estate investments in North America and Europe.

The parallel funds are currently over 30 percent invested, LaPuma said.

The firm was not immediately available to comment further.

LCN launched the initial set of sale-leaseback and built-to-suit Transatlantic funds in 2013 with a target of $250 million each, as Private Debt Investor reported. In the first simultaneous closes that August, the firm raised $142.45 million for its North American Fund I, while the European-focused Fund I raised €60 million. Across the first two funds, LCN garnered $1 billion, according to the firm’s website.

The firm’s investment strategy is a hybrid of corporate debt and real estate, in which the firm underwrites the credit of the company occupying the property as well as the asset itself. LaPuma, a former head of international investments at WP Carey, co-founded the firm with ex-Goldman Sachs executive Bryan York Colwell, in 2011.

LCN has over $1.4 billion of assets under management, according to its website. However, the latest fundraise provides LCN with over $2.5 billion in aggregate purchasing power, the statement showed.

Since its founding, the firm has completed more than 250 sale-leaseback and build-to-suit investments exceeding $10 billion in cost, and currently has over $1.75 billion of property, the statement read.