Patron Capital has secured €860m in capital commitments for its latest European real estate fund to target distressed and undervalued investments.
The European investment firm said the capital raised for the Patron Capital VII fund at close included over €200m of Patron discretionary co-investment capital for larger opportunities.
Patron secured 76% of the total capital from its existing investor base. The majority of the commitments originated from US and Canada, followed by investors in Asia Pacific, Europe and the Middle East. Investors include pension funds, sovereign wealth funds, endowments, foundations and family offices.
Fund VII will continue the same investment strategy as Patron’s previous funds, opportunistically targeting distressed and undervalued investments, directly or indirectly related to property, across Western Europe.
Patron said the fund will invest across a range of sectors in property-backed corporate investments as well as individual properties as it targets deal size ranges from €30m to €80m in equity.
Fund VII is the seventh vintage in Patron’s flagship series which targets returns of 17% to 20% gross internal rate of return over a four-to-five-year investment horizon.
Patron said Fund VII has so far deployed 10% of its investment capacity to complete a number of investments across a range of asset classes in Western Europe and is projecting an 18% return on its investments.
Keith Breslauer, managing director and founder of Patron Capital, said: “In the 25 years since Patron Capital was founded, we have worked successfully through many cycles and can say with confidence that the current opportunity set in real estate is one of the most exciting I have seen. However, while many can see distressed and undervalued assets coming to the market, few have been able to raise the capital needed to execute.
“Raising the capital for Fund VII at the pace we have and with a high proportion of re-ups from our longstanding investors is a very strong endorsement of Patron as the manager of choice for value-add and opportunistic real estate in Europe.”
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