Madison Realty raises $2bn for sixth real estate debt fund
Madison Realty Capital has raised more than $2bn (£1.52bn) for the sixth iteration of its US real estate debt fund.
The Madison Realty Capital Debt Fund VI will have a $6-8bn investment firepower through leverage and capital recycling.
The fund closed with commitments from both new and existing institutional investors from North America, the Middle East, Europe and Latin America. It will target multifamily and residential properties, as well as opportunistic opportunities in hotels, student housing, land, industrial, retail and office sectors.
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“The successful close of our second consecutive fund of more than $2bn during a prolonged period of turbulent market conditions is a testament to the confidence our investors have placed in Madison after twenty years in business,” said Adam Tantleff, managing principal of Madison Realty Capital.
“Institutional investors are increasingly focused on private credit, which is a rapidly growing portion of many portfolios.
“Our early entry into the industry, combined with our comprehensive platform and track record, uniquely positions the firm to capture the substantial demand for well-capitalised, non-bank lenders as uncertainty persists within the real estate and broader credit markets.”
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The fund has already completed more than $3.79bn in deal volume across 26 transactions and is approximately 45 per cent called on its capital commitments.
“We continue to see attractive opportunities to deliver direct financing to new and existing borrowers in addition to expanding our capabilities to provide other private credit lenders with unique flexibility and creative financing solutions including senior and note on note financing options,” added Josh Zegen, managing principal and co-founder of Madison Realty Capital.
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