Madison Realty Capital has raised over $2bn (€1.8bn) for its sixth US real estate debt fund.
The manager said Madison Realty Capital Debt Fund VI, which raised $2.04bn at close, will have a $6-8bn investment firepower through leverage and capital recycling.
Madison Realty raised $2.08bn in January 2022 at the close of the previous fund in the series.
Fund VI attracted both new and existing institutional investors from North America, the Middle East, Europe and Latin America, expanding the firm’s investor base in Asia, the manager said, adding that nearly 70% of the fund’s capital came from existing investors.
Fund VI mainly targets multifamily and residential properties but also explores opportunistic opportunities in hotel, student housing, land, industrial, retail and office sectors.
Madison Realty said Fund VI has so far completed over $3.79bn in deal volume across 26 transactions and is approximately 45% called on its capital commitments.
Adam Tantleff, managing principal of Madison Realty Capital, said: “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. 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.”
Josh Zegen, managing principal and co-founder of Madison Realty Capital, said: “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.”
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