Madison prepares launch of EUR 600m fifth fund

US real estate private equity firm Madison International Realty is planning the launch of its fifth real estate investment fund just over one year after having closed International Real Estate Liquidity Fund IV with $510 mln (EUR 390 mln) of equity commitments.

'We have been able to raise a significant amount of equity and we expect to be able to launch the successor fund over the summer,' Ronald Dickerman, founder and president of Madison International Realty, told PropertyEU. Dickerman expects the fund to raise equity of up to $750 mln.

'We will continue to focus exclusively on core assets,' he noted, 'We are not going up the risk curve at a time when the market is getting more risky.'

Madison will still pursue an enhanced-return strategy through a 'direct secondary market' approach, he added, which means the company will be seeking to buy out illiquid and/or partial ownership interests from investors seeking an early exit strategy.

According to well-informed market sources Madison, which focuses on the US, UK and Western Europe, is the buyer of Morgan Stanley's P2 Value fund's 57% stake in the Trianon office tower in Frankfurt. It is understood that the disposal - which is part of the liquidation of P2 Value - is expected to be closed in the next few weeks.