Madison Realty Capital closes Debt Fund III on $695m

The firm sourced the capital for the MRC Debt Fund III LP from public and corporate pension funds, foundations, endowments, family offices, and wealth managers.

Madison Realty Capital (MRC) has announced the final closing of the firm’s third institutional real estate debt investment vehicle with a total of $695 million raised.

Adam Tantleff, MRC
Adam Tantleff, MRC

The private equity firm, which is focused on real estate equity and debt investments in the US middle-market, has exceeded its original capital commitment goal of $600 million, according to a press release. The firm sourced the capital for MRC Debt Fund III LP from public and corporate pension funds, foundations, endowments, family offices, and wealth managers.

“As our firm assets now approach $3 billion we continue to find and exploit market opportunities which exist in the under-served middle markets across asset classes,” said Adam Tantleff, managing principal of MRC, in prepared remarks. “Our vertically-integrated platform, encompassing both debt and equity expertise, allows us to take advantage of special situation lending opportunities which others may not have the capabilities to act on.”

MRC Debt Fund III originates commercial mortgage loans, mezzanine loans and preferred equity interests, and acquires non-performing mortgages and has more than $2.5 billion of transaction capabilities. MRC’s previous debt vehicle, Sullivan Debt Fund, launched in 2012 and raised $350.4 million of commitments. In 2005, MRC launched its initial debt fund which raised in excess of $300 million.

MRC is a New York-based real estate investment firm that pursues real estate equity and debt investments in the middle market and has $2.7 billion in assets.

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