The firm achieves its investment objectives by creating a diversified portfolio of non-traditional securities and financial instruments purchased upon issuance or in the secondary market. In most cases, these assets are backed by, or derive value from, real estate or other hard assets; and/or may be undervalued and in some form of distress or default. Madison’s investments generally exhibit at least one of the following characteristics:
- Fractionalization: Through our affiliates, we aggregate small, fractionalized securities and financial instruments directly from a myriad of individual or non-institutional holders
- Institutionally overlooked: We focus on securities and financial instruments with limited institutional investor/broker interest and no "street" research coverage
- Illiquidity: Through our affiliates, we provide liquidity to holders of thinly traded or non-liquid financial instruments.
- Capital supply constraints: Through our affiliates, we provide high-yield capital to entrepreneurial and middle-market companies as well as niches within the real estate markets. Many of these borrowers are underserved because of an array of possible circumstances, including small transaction sizes, non-conventional asset classes, complex/unusual transaction terms, short investment duration, and unconventional underwriting parameters
Leveraging our expertise and proprietary operating platform, Madison has a clear competitive advantage: The ability to efficiently aggregate undervalued "below the radar" financial assets at below market prices.