Patron Capital’s new €750m fund nears closing

European opportunistic and distressed asset investor Patron Capital is believed to be edging closer to its €750 mln hard cap for Fund V in one of the company's fastest capital-raise ever.

Fund V is understood to have raised nearly two-thirds of its target equity commitments and is considering whether to anticipate closing in around six months or the end of this year.

Most of the fund’s raised equity is from existing investors, according to market sources.

As for the previous vehicles, Fund V will acquire assets on its own as well as co-investing its war chest of nearly €3 bn with partners and banks.

The typical investment size will be between €30 and €100 mln, and potentially more with its co-investment partners.

Fund V will target distressed and under-valued investments, directly or indirectly related to property, primarily across Western Europe. Like its predecessor, the vehicle will focus on distressed property and property-backed corporate investments including property companies, loans, hotels and leisure and healthcare, with the aim to generate a 17% to 22% gross IRR over a three-to-five year investment horizon.

Patron’s prior fund raised around €780 mln in late 2012, plus a further €100 mln in a dedicated discretionary co-investment pool.

Patron, with a 73 staff, has offices in London, Barcelona, Milan and Luxembourg.