Patron Capital Raises in Excess of €860 Million ($920 Million) for Fund VII
13 May 2024 - 4:00PM
Business Wire
Patron Capital, the pan-European institutional investor focused
on property-backed investments, has closed its seventh flagship
fund, raising in excess of €860 million, including more than €200
million of Patron discretionary co-investment capital for larger
opportunities.
Of the capital raised for Patron Capital, L.P. VII (‘Fund VII’),
76% came from Patron’s existing investor base and existing
relationships, with the majority of commitments coming from the US
and Canada, followed by Asia Pacific, Europe, and the Middle East.
Investors included 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. The fund will invest across a
range of sectors in property-backed corporate investments as well
as individual properties. Patron’s typical deal size ranges from
€30 to €80 million in equity, enabling Patron to deploy its
granular approach and target opportunities that are off market or
not accessible to other investors, while Patron is able to realise
larger opportunities using its co-investment capital.
This is the seventh vintage in Patron’s flagship series, which
targets returns of 17% to 20% gross IRR and a 1.6x-2.0x gross
equity multiple on invested capital over a four-to-five-year
investment horizon. However, Patron regularly exceeds these
numbers, highlighting the firm’s ability to add value through asset
management and time acquisitions and disposals for the best
results.
Patron has already started to deploy capital from Fund VII,
using approximately 10% of the Fund’s investment capacity to
complete a number of investments across a range of assets classes
in western Europe, and is projecting a 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.
“Looking ahead, we shall continue deploying this capital using
our granular approach, with our deep relationships across Europe
providing access to opportunities that others cannot realise, while
maintaining conversations with prospective investors who wish to
use our expertise to execute on larger transactions through
co-investment.”
Notes to Editors
About Patron Capital Partners
Patron represents approximately €5.2 billion of capital raised
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.
Since it was established in 1999, Patron has undertaken more
than 200 transactions across 106 investments and programs involving
over 9 million square metres in 17 countries, with many of these
investments realised.
Investors represent a variety of sovereign wealth funds,
prominent universities, major institutions, private foundations,
and high net worth individuals located throughout North America,
Europe, Asia and the Middle East. The main investment adviser to
the Funds is Patron Capital Advisers LLP, which is based in London,
and Patron has other offices across Europe including Barcelona and
Luxembourg; the group is comprised of 63 people, including a
37-person investment team.
Further information about Patron Capital is available at
www.patroncapital.com
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