Oak Street Announces Strategic Partnership with Goldman Sachs Asset Management
CHICAGO – December 22, 2020 – Oak Street Real Estate Capital, LLC (“Oak Street”), a private equity real estate firm, today announced that Goldman Sachs Asset Management’s Petershill program has made a strategic investment in the firm. Terms of the transaction were not disclosed.
Oak Street is the preeminent independent manager of single-tenant net lease funds, which provide corporations with the ability to move real estate investments off balance sheet, delivering immediate liquidity, tax benefit, and operational flexibility. As the leader in this market, Oak Street has developed a platform with capital, scale and expertise necessary to enter into large, complex sale-leaseback transactions with investment-grade corporations.
The capital provided by the sale of this passive, minority stake will allow Oak Street to accelerate the growth of its funds, the development of its technology and sourcing capabilities, and the expansion into adjacent markets.
“This investment is a testament to the strength of our team and our limited partners; without them we would not have accomplished this. We are truly thrilled about this partnership with Goldman. Their people, platform and resources will allow us to accelerate Oak Street’s growth and expand on our vision to continue innovating the net lease sector.” Marc Zahr, Co-Founder and Chief Executive Officer.
“Oak Street was founded on the principle that monthly cash flow from investment grade tenants should be the foundation of a diversified investment portfolio. For the past decade we have delivered on our commitment to this principle and have experienced exponential growth as a result. This partnership will allow us to dramatically expand our capabilities in core areas and harness additional expertise that will drive value for our investors.” Jim Hennessey, Co-Founder and Chief Financial Officer.
Christian Von Schimmelmann, co-head of Goldman Sachs Asset Management’s Petershill program, said, “With its unique strategy, Oak Street has created an incredible platform to provide solutions for organizations to which management of real-estate is not core to their business. There is an attractive opportunity for Oak Street to scale its operations and capture significant value, while continuing to be the real estate investor of choice for their corporate partners.”
Berkshire Global Advisors served as financial advisor and Kirkland & Ellis LLP served as legal advisor to Oak Street. Fried, Frank, Harris, Shriver & Jacobson LLP served as legal counsel to Petershill.
About Oak Street Real Estate Capital (Oak Street), LLC
Oak Street Real Estate Capital, LLC is a Chicago-based private equity real estate firm primarily focused on acquiring properties net-leased to investment grade rated tenants. Oak Street specializes in providing unique and flexible real estate solutions to a variety of organizations including corporations, healthcare systems, universities, and government entities. For more information, please email firstname.lastname@example.org.
About Goldman Sachs Asset Management’s (GSAM) Petershill Program
The Petershill program is managed by GSAM’s Alternative Investments & Manager Selection (AIMS) Group, which provides investors with investment and advisory solutions across leading private equity funds, hedge fund managers, real estate managers, public equity strategies and fixed income strategies. With investments in over 20 asset management firms, the Petershill program provides strategic capital to asset management firms and has raised over $5 billion of commitments since inception. GSAM is one of the world’s leading investment managers with more than $1 trillion in assets under supervision globally as of September 30, 2020.