Madison International Realty announced the closing of its newest fund at $1.39 billion.
The investment company has already deployed $400 million into Hudson’s Bay Company property at 550 Kearny Street, in San Francisco, and St. Stephen’s Green, a shopping center in Dublin, Ireland.
Madison International Real Estate Liquidity Fund VI LP, the firm’s largest fund to date, exceeded its $950 million target and attracted a global roster of institutional investors, said Ronald M. Dickerman, Madison’s founder and president.
“The success of the Fund VI capital raise demonstrates the confidence investors have placed in Madison’s highly differentiated direct secondary investment strategy, which targets ownership stakes in prime commercial properties and portfolios in capital cities of the US, UK and Western Europe,ˮ said Dickerman.
“Our strategy is proven to produce asymmetric returns in numerous economic cycles, with minimal volatility. We believe our strategy is counter-cyclical during periods of economic uncertainty. With Fund VI, we executed a global fund raise and received robust and broad support from current and new investors.ˮ
Dickerman said the recent capital raise expanded Madison’s international investor base. Fund VI investors include endowments, foundations, public and private pension funds, sovereign wealth funds, family offices, insurance companies and high net worth individuals from Europe, Asia, the Middle East and Australia, as well as the US.
Madison International Realty specializes in acquiring ownership stakes, joint venture, private REIT and listed property shares in prime properties and portfolios in primary markets in the US, UK and Western Europe.
The firm also provides joint venture equity to owners, sponsors and investors who are seeking to monetize existing equity positions, restructure balance sheets, or to replace existing capital partners.
“Our strategy allows owners and sponsors to monetize embedded equity without requiring a sale of their properties.
“The volatility of the market has created opportunities for us, with Madison deploying some $700 million of equity over the past year,“ Dickerman said.