NEW YORK CITY—Madison Realty Capital on Tuesday said it had completed the first closing on its Madison Realty Capital Debt Fund III LP. Launched earlier this year, MRC Fund III is the firm's third real estate debt investment fund.

The discretionary private equity fund raised a total of $145.4 million of capital commitments from a diverse group of investors. They include public pension funds, corporate pension funds, university endowments, family offices and wealth managers.

 “It's gratifying to have the continued support of our investors,” says Adam Tantleff, managing principal of MRC. “All of the limited partners in the first closing of MRC Fund III have been investors in our previous debt funds, or invested as LPs in our equity acquisition and development deals. Our fully-integrated real estate platform has been successful in maintaining the volume and quality of middle-market investment opportunities, and the performance of MRC's portfolio has helped MRC continue to build on its loyal investor network.”

MRC Fund III is targeting $600 million in investor commitments. It will originate and acquire commercial mortgage loans, mezzanine loans and preferred equity interests in real property, and may employ up to 50% leverage in its portfolio.