Private Equity

A competitive tool for private equity

In a sale-leaseback, a portfolio company sells its real estate to an investor for cash and simultaneously enters into a long-term lease. In doing so, the private equity firm and its portfolio company extract 100% of the property’s value and convert an otherwise illiquid asset into working capital to grow the business, while maintaining full operational control

Benefits of sale-leasebacks for private equity

Unlock immediate, attractively priced capital Secure attractively priced capital to maximize portfolio company value and overall returns.
Replace short-term debt Transition from short-term debt to tax-efficient, permanent capital with no refinancing risk.
Take advantage of cheaper acquisition targets or emerging opportunities Add sale-leaseback financing as part of the capital stack for M&A opportunities.
Provide portfolio companies with balance sheet flexibility Pay down portfolio company debt and boost cash flow for growth.
Return capital to investors Distribute capital to investors through dividend payments.
Maintain operational control Retain control of portfolio company real estate.

Private equity sale-leaseback successes

An orange backhoe picking up mulch

GardenCore

Sale-leaseback of 43 manufacturing facilities across 24 states in the United States triple-net leased to GardenCore, a leading manufacturer of lawn and garden consumables.

The interior of a refrigeration facility.

AeriTek

$61 million sale-leaseback of 6 industrial facilities in Mexico.

The interior of a warehouse

Metra

$86 million follow-on sale-leaseback of with existing tenant backed by strong private equity sponsorship.

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