Madison Realty Capital Raises Over $2B in Sixth Debt Fund
By Andrew Coen September 12, 2024 1:03 pm
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Madison Realty Capital (MRC) has raised $2.04 billion for its sixth U.S. real estate debt fund, two years after launching, the private equity firm announced Thursday.
The Madison Realty Capital Debt Fund VI, which launched in September 2022, marks the firm’s largest U.S.-focused real estate debt fund to date and the second consecutive fund to surpass $2 billion in equity commitments. MRC said the fund is centered around investing in multifamily and “residential-related” properties with plans to also target “opportunistic” assets in the hotel, student housing, industrial, retail and office sectors.
“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,” Josh Zegen, managing principal and co-founder of MRC, said in a statement. “Since launching Fund VI, we have already deployed capital into attractive opportunities where we have expertise, and we expect the opportunity set and investment pipeline to remain robust.”
The fund has thus far completed more than $3.79 billion in originations from 26 deals in major metropolitan markets in the U.S.
Capital commitments for MRC’s Fund VI derived from new and existing institutional investors from North America, the Middle East, Europe, and Latin America with an expanded investor base also seen in Asia, the firm said. Returning institutional investors comprised nearly 70 percent of the fund.
“The successful close of our second consecutive fund of more than $2 billion during a prolonged period of turbulent market conditions is a testament to the confidence our investors have placed in Madison after 20 years in business,” Adam Tantleff, managing principal of MRC, said in a statement. 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-capitalized, non-bank lenders as uncertainty persists within the real estate and broader credit markets.”
Andrew Coen can be reached at acoen@commercialobserver.com
