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“NorthBridge and Park Madison Partners Close $950M Fund IV for Infill Logistics Investments”
NorthBridge Partners and Park Madison Partners have successfully closed their NB Partners Fund IV, securing a total of $950 million in capital. This fund is specifically targeted towards investments in small to midsized infill logistics properties.
The primary focus of the fund is to acquire properties situated in densely populated areas, active ports, or markets with manufacturing activities poised to benefit from the reshoring trend that has gained momentum in recent years.
Despite a decline in overall industrial investment, which dropped by 44% year-over-year to $81 billion in the fourth quarter, NorthBridge’s fund has already invested approximately $200 million of equity in 23 buildings. This investment activity reflects the fund’s proactive approach amidst challenging market conditions.
Greg Lauze, Managing Partner and Chief Investment Officer of NorthBridge, expressed optimism about the investment landscape, citing strong secular tailwinds for infill industrial real estate. He emphasized the favorable environment created by dislocated capital markets, which has presented attractive opportunities for investment.
A diverse range of investors participated in the fund, including public and private pensions, endowments, foundations, insurance companies, sovereign wealth funds, family offices, and high net worth individuals. Approximately half of the total investment came from existing institutional investors, with the remainder sourced from new investors.
Despite facing some challenges, such as sluggishness in the capital markets, the fundraising process for NB Partners Fund IV was successfully completed within a timeframe of about 20 months.
Founded in 2014, NorthBridge specializes in the acquisition and management of small to midsized infill logistics properties, leveraging its expertise to capitalize on emerging trends and market opportunities.
