Warburg Pincus has formed a $300m strategic partnership with Madison International Realty to pursue investments in the real estate secondaries market, a fast-growing segment of private capital driven by liquidity demand and capital market dislocation.

The commitment, made through the $4bn Warburg Pincus Capital Solutions Founders Fund, establishes a dedicated vehicle for the two firms to deploy capital across preferred real estate sectors including data centres, industrial, residential, and cold storage.

The initiative will focus on providing liquidity solutions to existing investors and managers facing refinancing or balance sheet challenges, with a view to capturing value at attractive discounts.

“We believe the real estate secondaries market represents a compelling opportunity at a time when liquidity is increasingly constrained,” said José Arredondo, Principal at Warburg Pincus. “Our combined expertise, network, and resources with Madison will create a powerful platform for growth.”

The collaboration comes amid one of the tightest liquidity environments in global real estate in more than a decade. Rising interest rates and limited transaction activity have spurred demand for secondary market solutions, enabling institutional investors to monetise existing holdings without traditional sales.

Madison, which has raised over $8bn from more than 175 institutional investors, has been a pioneer in direct real estate secondaries for over 20 years. Warburg Pincus, managing $85bn in assets, has invested over $117bn across 1,000 companies worldwide.

Both firms said the partnership will focus on high-quality assets in sectors benefiting from long-term structural demand, including digital infrastructure and logistics, while targeting risk-adjusted returns amid continued market repricing.

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