Madison International Realty Closes $1.2B Fund, Buffers Business Amid Coronavirus
Madison International Realty, a real estate private equity firm, has closed its commingled investment fund the Madison International Real Estate Liquidity Fund VII, with $1.2 billion of equity commitments, including sidecars, co-investment vehicles and general partner commitments.
NEW YORK CITY- Madison International Realty, a real estate private equity firm, has closed its commingled investment fund the Madison International Real Estate Liquidity Fund VII, with $1.2 billion of equity commitments, including sidecars, co-investment vehicles and general partner commitments.
The fund boasts a counter-cyclical investment strategy, which includes direct secondary investing where the fund provides liquidity to partners and holders of prime properties for their equity stake in the real estate, Ronald Dickerman, founder of Madison International Realty, tells GlobeSt.com.
“We believe our business benefits in changing economic conditions,” Dickerman said. “The bottom line is we inherit and buy into the ownership stake in a prime building. We tend to focus on buildings with high occupancy and cash flow. We don’t manage the buildings themselves but we become partners with building management for the remainder of the holding period.”
Madison VII investors include endowments, foundations, public and private pension funds, sovereign wealth funds, family offices, insurance companies and high net worth individuals in the US, Europe, Asia, the Middle East and Australia. The fundI is invested or has targeted several diversified investments owning prime properties in the office, multi-family, industrial and retail asset classes.
The firm reached its fundraising target that was between $1.2 to $1.3 billion. “We’re happy to have completed our capital fundraise before the Coronavirus outbreak, so that’s been very positive,” he said.
Amid the Coronavirus outbreak, the firm has implemented a large number of protocols for its New York City office and its offices globally, also reaching out to its sponsor partners that it has partnered with. “Our number one protocol is to protect our people and partners with doctors and a business interruption program for staggered work hours, and we have banned all non-essential work travel. We’re hoping for the best and preparing for the worst,” Dickerman said.