Madison International Realty, a leading real estate private equity firm, has announced the final closing of Madison International Real Estate Liquidity Fund VI LP, the firm’s largest fund to date, with €1.26bn ($1.39bn) of equity commitments, including side cars, co-investments and GP commitments.
Fund VI exceeded its €861m ($950m) 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. 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,” Dickerman said.
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.
Madison Fund VI has already deployed approximately €362m ($400m) into prime assets. Investments include the Hudson’s Bay Company Property Vehicle, 550 Kearny Street, an office building in San Francisco, and St. Stephen’s Green, a shopping centre located in the heart of Dublin.
“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 €635m ($700m) of equity over the past year,“ Dickerman said.
He said the recent capital raise expanded Madison’s diverse 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.
