FocusPoint Announces Final Closing of Another Credit and Income-Related Assignment as LCN Capital Partners Blows Through Hard Cap for LCN North American Fund III and LCN European Fund III at $1.35 Billion
Fund raise highlights increased institutional demand for alternative credit strategies
New York, NY, February, 3, 2020 – FocusPoint Private Capital Group (“FocusPoint”) is pleased to announce the final closing of LCN Capital Partners’ (“LCN”) third set of sale-leaseback funds for North America and Europe with a combined $1.35 billion capital raise with the LCN North America Fund III and LCN European Fund III raising $635 million and €600 million ($728 million), respectively. 100% of all Fund II’s institutional investors recommitted capital for Fund III, the majority from North America, underscoring their ongoing demand for alternative credit options.
FocusPoint acted as exclusive placement agent for North America during the capital raise and the funds respectively exceeded their $575 million and €575 million caps, the largest fundraising round since LCN’s formation by Ed LaPuma and Bryan Colwell in 2011. FocusPoint has been working with LCN since 2011, sourcing investors for LCN North America and LCN European funds.
During the fourth quarter, 2020, FocusPoint client, Round Hill Music Royalty Partners also had a final close for its Fund III and is another example of the increased investor demand these income-related strategies have garnered. Similar to LCN, FocusPoint has worked with Round Hill Music on all its funds since inception.
LCN’s sale-leaseback investment strategy includes the acquisition and ownership of both a credit-backed long-term cash flow stream and the underlying real estate, and shares many of the attractive attributes of both fixed income and real estate investments.
“Demand for alternative credit investment, income-related strategies such as LCN’s continues to increase as institutional investors seek substitutes to fixed income allocations against a backdrop of historically low interest rates,” said David Conrod, Chief Executive, FocusPoint. “We have been active with a number of alternative credit strategies over the years. These include music, film, and television royalties, LCN’s sale-leaseback strategy, and leveraged loans and asset-based lending”
“During this capital raise, we witnessed significant demand from investors seeking non-bank sources of financing, and this strategy made perfect sense. Corporate CFO’s looking to raise cash, could quickly assess this option as Property, Plant, and Equipment is generally the largest line item on a balance sheet and selling a strategic asset and simultaneously re-leasing it back for a long period of time, helps CFOs free up much needed cash,” Conrod added.
FocusPoint has worked with LCN since its inception and launch of Funds l. LaPuma is a former 18-year senior executive at W.P. Carey and founder of W.P. Carey International, while Bryan Colwell held leading industry roles and was a senior investment banker at Goldman Sachs. “Ed LaPuma is one of the most talented investors we’ve met since raising institutional capital for over 20 years. The investment case is rock solid”, stated Conrod.
About FocusPoint Private Capital Group
FocusPoint Private Capital Group (https://www.fpcgllc.com/) was founded in 2010 by Guggenheim Partners veterans David Conrod and Robert Mortimer. Headquartered in New York City, the firm is an independent capital raising and advisory firm specializing in private capital markets and is a wholly owned affiliate of LANDC Investment LLC. The firm raises capital for private equity, credit, real estate, real assets and direct transactions in both developed and emerging markets.
FocusPoint operates as a FINRA regulated broker-dealer in the U.S. and is a member of SIPC.
Craig Allen, Managing Principal
Allen & Associates Communications
P: +1 475 419 4468