Madison International Realty has closed its fourth fund on $510 million of equity, more than 20 percent over its original target.
The New York-based firm first started fundraising for Madison International Real Estate Liquidity Fund IV in 2009 and initially targeted $400 million of equity, according to a Madison statement and Securities and Exchange Commission filings.
Focused on acquiring LP and partial ownership interests in core real estate assets in the US, UK and Western Europe, Madison acquired an additional $10 million of LP equity interests in New York’s Chrysler East Building in November. The deal, on behalf of Fund IV, increased the firm’s stake in the 32-storey office building on 42nd Street to 48.9 percent. Madison purchased the interests from a $107 million Commerzbank fund, which closed in 2002, because of investor “fatigue”. The Commerzbank fund originally had bought an 80 percent interest in the office building in September 2002 from Tishman Speyer, with Tishman retaining a minority stake.
Ronald Dickerman, Madison founder and president, said the firm also was targeting recapitalisations and debt restructurings as it looked to “monetise embedded equity in existing ownership entities. The final closing … is a significant milestone for us,” said Dickerman, who told PERE there were around 70 investors in Fund IV, including US, as well as international, LPs.
Forum Asset Management and Mercury Capital Advisors acted as placement agents, according to SEC filings.
In November, Madison opened an office in London, hiring former Bell Capital Partners and Lehman Brothers executive Sean Kelly-Rand as director. The same month, the firm also hired former Tishman Speyer managing director Bradley Carroll to help source deals in the US.