FICC Focus Credit Crunch: New Mountain’s Kaplan on Net-Lease Landscape
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Nov 3, 2025 Teddy Kaplan, President and CEO of NetLease at New Mountain Capital, brings over 23 years of expertise in the net-lease space. In this discussion, he highlights the chronic undersupply of manufacturing assets and the growing significance of sale-leasebacks. Kaplan delves into reshoring trends, the dynamics of asset-multiple arbitrage, and the importance of identifying strong markets and tenants. He also addresses how to manage portfolio distress and the emerging landscape of asset-backed funding solutions.
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Net-Lease Basics And Sale-Leasebacks
- Triple-net leases create bond-like, passive cash flows because tenants pay taxes, insurance, and maintenance.
- Sale-leasebacks convert owner-occupied real estate into long-term leased assets that yield durable income for landlords.
Career Origin Story With WP Carey
- Teddy recounts discovering WP Carey in business school and seeing very high leveraged returns in sale-leasebacks.
- That experience convinced him net-lease investing could earn equity-like returns with lower risk.
PE Integration Improves Net-Lease Edge
- Embedding net-lease within New Mountain leverages deep private equity credit and sector expertise.
- That integration improves originations and underwriting versus standalone net-lease platforms.