European investor Patron Capital has announced the closing of its fifth fund, raising €949 mln of equity including approximately €143 mln of co-investment capital.
The vehicle exceeded its original target of €750 mln, attracting investors from nine countries, with the majority of commitments coming from North America, followed by Europe, Asia Pacific and the Middle East. Investors included pension funds, sovereign wealth funds, endowments, foundations and asset managers.
Fund V 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. The fund will invest across a range of sectors in property-backed corporate investments as well as individual properties.
Around €164 mln has already been deployed from Fund V and its co-investment pool, with investments to date across office, residential and retail properties and corporate entities in the UK, France, Germany, Ireland, Portugal and Spain.
'With returns over our 17-year history averaging around 15%, we have proven experience of identifying opportunities and maximising value,' commented
Keith Breslauer, Patron Capital’s founder and managing director. 'The fact that we closed this fund in the lead up to and immediate aftermath of Brexit – and were significantly oversubscribed – highlights investors’ confidence in our ability to deliver strong returns in any economic environment.'
Patron's previous fund, Fund IV has returned over 60% of capital invested to date and is projected to provide an IRR to investors of over 25%.
Breslauer: 'Our new fund alone gives us the financial firepower to invest in around €3 bn of assets and our experienced and hands-on team means we are very well placed to make the most of the significant distressed opportunities that exist in Western Europe.'
Greenhill & Co acted as the placement agent.
Patron represents €3.4 bn of capital across several funds and related co-investments, investing in property, corporate operating entities whose value is primarily supported by property assets and distressed debt and credit related businesses.
