Madison Capital Targets $200M for Tax-Efficient Convenience Store, Car Wash Fund

Event summary

  • Madison Capital Group launched Car Wash & Convenience Opportunity Fund LLC targeting $200M in capital commitments from accredited investors.
  • Fund will invest in convenience stores and express car washes, focusing on no-income-tax states and markets with positive population growth.
  • Early investors receive up to 10% preference if they subscribe before June 1, 2026, and up to 6% if they subscribe between June 1 and September 1, 2026.
  • Fund leverages accelerated 'Schedule F' bonus depreciation under The One Big Beautiful Bill Act to boost immediate cash flow.

The big picture

Madison Capital Group is capitalizing on the tax advantages provided by The One Big Beautiful Bill Act to attract investors to essential service real estate assets. The strategy aligns with broader trends in real estate investment, where tax efficiency and population growth are key drivers of asset selection. With approximately $4B in assets under management, the firm is leveraging its vertically integrated platform to identify and execute on high-growth market opportunities.

What we're watching

Tax Efficiency
How the utilization of accelerated bonus depreciation will impact the fund's after-tax performance and investor returns.
Market Focus
Whether the emphasis on no-income-tax states and high-growth markets will drive sufficient demand for the fund's investments.
Investor Response
The pace at which Madison Capital Group can secure the $200M target, particularly given the tiered early investor incentives.