Madison Realty Capital has closed its sixth debt fund, raising $2.04 billion in equity commitments. The fund aims to continue the firm’s strategy of originating and acquiring loans in major metropolitan markets across the United States. It primarily focuses on multifamily and residential properties but also targets opportunities in hotel, student housing, land, industrial, retail, and office sectors.
This latest fund closed slightly below its predecessor, which secured $2.08 billion in January 2022. Despite the slight decrease, the fundraising demonstrates strong investor confidence in Madison Realty Capital, even amid challenging market conditions. “The successful close of our second consecutive fund of over $2 billion during turbulent market conditions underscores the trust our investors have in us after two decades in the business,” said Adam Tantleff, managing principal of Madison Realty Capital.
Madison Realty Capital employs a comprehensive in-house asset management platform that includes servicing and development functions. The firm offers direct lending, purchasing performing and non-performing notes, and providing financing to other alternative lenders.
According to Tantleff, institutional investors have been increasing their focus on private credit, which is becoming a significant part of many portfolios. “Our early entry into the private credit market, combined with our extensive platform and proven track record, allows us to meet the growing demand for well-capitalized, non-bank lenders amid ongoing uncertainty in the real estate and credit markets,” he added.
To date, Madison Realty Capital’s sixth fund has completed transactions totaling over $3.79 billion across 26 deals in major U.S. metropolitan areas. The fund has called around 45% of its capital commitments. Moving forward, Fund VI is expected to invest between $6 billion to $8 billion, including leverage and capital recycling.
The firm continues to see promising opportunities to provide customized financing solutions and aims to expand its offerings to other private credit lenders. “As we look to grow our platform, we aim to be the preferred lender for borrowers needing speed and certainty of execution,” said Josh Zegen, managing principal and co-founder of Madison Realty Capital. “Since the launch of Fund VI, we have deployed capital into attractive opportunities and expect the investment pipeline to remain strong.”
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By Proptechbuzz
By Ravi Kumar
