Patron Capital has closed its seventh flagship fund raising more than €860m, including more than €200m of discretionary co-investment capital for larger opportunities.
The majority of the capital raised for Patron Capital LP VII (Fund VII) came from Patron’s existing investor base. Investors included pension funds, sovereign wealth funds, endowments, foundations and family offices.
Fund VII will opportunistically target distressed and undervalued investments directly or indirectly related to property across Western Europe, with Patron’s typical deal size ranging from €30m to €80m in equity.
Patron is targeting 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.
Keith Breslauer (pictured), 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.”
