Pan-European distressed asset investor Patron Capital has raised over EUR 880 mln for its new fund, Fund IV, which will acquire assets on its own as well as co-invest with partners and banks.
Pan-European distressed asset investor Patron Capital has raised over EUR 880 mln for its new fund, Fund IV, which will acquire assets on its own as well as co-invest with partners and banks.
Patron said the fund raising significantly exceeded expectations, creating one of the largest funds within the Patron Capital portfolio. Fund IV attracted existing investors as well as over 40% of new investors, including prominent universities, major institutions, private foundations and high net worth individuals throughout Europe, North America, Asia and the Middle East. Monument Group acted as the exclusive placement agent.
The fund has a war chest of EUR 3 bn and will target distressed and undervalued investments, primarily across Western Europe. It will focus on direct property assets and property-backed corporate investments, including property companies, hotels and leisure and healthcare.
Patron aims to generate a 17% to 22% gross IRR over a three-to-five year investment horizon. Some 15% of Fund IV has already been deployed, with initial investments including Luxury Family Hotels (the distressed Von Essen properties), the Motor Fuels Group chain of retail/petrol stations and the distressed Uni-Invest CMBS transaction in the Netherlands.
Commenting on the final close of Fund IV, Keith Breslauer, Patron Capital’s founder and managing director, said: ‘There is a plethora of opportunities in Europe at this point in time and the EUR 880 mln we have attracted will enable us to pursue our clear thematic approach.’
