Proterra Investment Partners Hires David Kay to Lead Net Lease Real Estate Business

Rhea-AI Summary

Proterra Investment Partners has appointed David Kay as Managing Director to co-head their new net lease real estate business initiative. Kay, previously the Founder and Managing Partner of Jera Partners ($800M AUM), brings extensive experience from his roles as President and CEO of American Realty Capital Properties (later VEREIT) and as co-founder and executive at Capital Automotive REIT, managing over $30B in assets.

Kay will partner with Mark Decker to lead Proterra Net Lease, focusing on creating yield opportunities through sale-leaseback investments. The strategy aims to provide defensive cash yields through well-executed net leases, benefiting from rising rents, long-duration lease growth, and physical property collateral. Proterra believes Kay's expertise will complement their existing food value chain focus and help unlock value for business owners.

Positive

• Addition of industry expert David Kay with track record of managing $30B+ in assets
• Strategic expansion into net lease real estate market
• Potential for new revenue streams through sale-leaseback investments
• Synergy with existing food value chain business

Negative

• None.

MINNEAPOLIS, Feb. 4, 2025 /PRNewswire/ -- Proterra Investment Partners LP ("Proterra"), a Minneapolis-based alternative asset manager focused on private equity and private credit investments across the food value chain, announced today that David Kay has joined the firm as a Managing Director, to Co-head Proterra's effort to add net lease real estate to the firm's existing credit and yield offerings. 

Mr. Kay was most recently the Founder and Managing Partner of Jera Partners, a commercial real estate investment firm specializing in properties net-leased to quality credit tenants. Jera Partners has over $800 million in assets under management.

Prior to Jera, Mr. Kay served as President and CEO of American Realty Capital Properties, Inc. (ARCP) which was renamed VEREIT, Inc. (NYSE: VER) and later sold to Realty Income. He was also a co-founder, Chief Investment Officer, Chief Financial Officer, and Treasurer of Capital Automotive REIT (CARS). Both VER and CARS were large, publicly traded net-lease companies, with more than $30 billion in assets under management. Mr. Kay played a crucial role in the formation, strategic vision, and management of ARCP, VER and CARS.

Mr. Kay will co-head Proterra Net Lease alongside Mark Decker, who has been a trusted colleague for over 25 years. "David has been an innovator with respect to lease structure and financing since the late 1990s, and we're excited to help business owners unlock value from their real estate," said Decker.

The firm believes that well-executed net leases can provide an attractive, cycle-agnostic, defensive cash yield. Additionally, sale-leaseback investments should benefit from rising rents over time, steady contractual growth from long-duration leases, and the safety of collateral provided by the physical property itself. Proterra expects its relationships and knowledge in the food value chain will complement the strategy well.

"We believe David Kay is one of the top experts in the industry, and his expertise will help us create highly attractive, risk-controlled yield opportunities for Proterra's investors. We are thrilled that he has joined our team to lead this strategic expansion into net leased real estate." said Rich Gammill, Proterra's Managing Partner. 

"Proterra has established itself as a leader in the food value chain and agribusiness industry," said Mr. Kay. "I have long admired the culture and collective expertise of the Proterra team, and I believe they have developed an optimal platform for executing sale-leasebacks and other net lease real estate transactions. I look forward to helping Proterra continue its exceptional success by expanding its reach into this asset class."

About Proterra Investment Partners LP

Proterra is an alternative asset manager that makes investments across the food value chain from farm to fork. The firm, which spun out of Black River Asset Management — a wholly owned, independently managed division of Cargill — focuses on seven core investment verticals: Credit, Farmland, Growth Equity, Private Equity, Sustainability, Asset-backed Strategies, and Real Estate. Led by a team that has worked together for more than a decade, Proterra manages approximately $3.3 billion in regulatory assets under management. Headquartered in Minneapolis, the firm employs 66 professionals across five global offices: Minneapolis, São Paulo, Shanghai, Singapore, and Sydney. For more information, visit https://www.proterrapartners.com/.

Contact

Proterra Investment Partners LP
Matthew Coad
Head of Capital Formation
ir@proterrapartners.com 

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SOURCE Proterra Investment Partners

FAQ

What is David Kay's role at Proterra Investment Partners?

David Kay has joined Proterra as Managing Director to co-head their net lease real estate business alongside Mark Decker.

What experience does David Kay bring from VEREIT (VER)?

Kay served as President and CEO of American Realty Capital Properties (ARCP), which was renamed VEREIT (VER), managing over $30 billion in assets before its sale to Realty Income.

What is Proterra's strategy for their new net lease real estate business?

Proterra aims to provide defensive cash yields through well-executed net leases, focusing on rising rents, long-duration lease growth, and physical property collateral.

How much assets under management did Kay's previous company, Jera Partners, have?

Jera Partners, founded by David Kay, has over $800 million in assets under management.