Warburg Pincus, a top global private-equity firm with around USD 85 Billion under management, and Madison International Realty, a leading real-estate secondaries specialist, have announced a USD 300 Million strategic investment partnership.
The investment from Warburg Pincus, via its USD 4 billion Warburg Pincus Capital Solutions Founders Fund, creates a dedicated vehicle for the two firms to collaborate and transact in the real-estate secondaries market.
Madison International Realty is a global leader in providing liquidity solutions across the real‑estate spectrum, from properties and portfolios to platforms. The firm has built a strong position in real‑estate secondaries and benefits from solid deal flow even when markets are tight.
Meanwhile, Warburg Pincus sees this growing segment as a key part of its capital‑solutions strategy and has identified Madison as a best‑in‑class partner to execute it.
This strategic partnership will focus on effectuating differentiated real estate investments, utilizing liquidity solutions to avail value in preferred real estate asset classes such as data centers, industrial, cold storage, residential/ housing and other sectors at what the partners believe to be attractive discounts to underwritten real estate value.
Executive Statement
According to José Arredondo, Principal, Warburg Pincus, they believe the real estate secondaries market represents a compelling opportunity at a time when liquidity is increasingly constrained. They are pleased to partner with Madison, a leading industry player for over two decades, and believe that they combined expertise, network and resources in the real estate sector will create a compelling and valuable partnership for growth.
According to Ronald Dickerman, founder and President of Madison International Realty, they are excited to form this strategic partnership with Warburg Pincus, the foremost name in private equity investing globally. They believe this strategic partnership will allow us to enhance their dynamic liquidity solutions based positioning in the real estate market at exactly the time global investors seek them most. Warburg Pincus recognizes the strength of our secondaries sourcing platform, the differentiation of our liquidity solutions-focused investment strategy, and Madison's access to compelling real estate opportunities in this capital constrained environment.