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Patron Capital eyes Fund V launch

London-based private equity real estate firm Patron Capital will target around  €1.1 billion for its next fund when it launches in the fourth quarter this year or Q1 2015.

Patron Capital, the London-based private equity real estate firm, is eyeing the launch of Fund V – the next in its pan European opportunity fund series – in the fourth quarter this year or early into 2015, PERE has learned.

The company declined to comment when contacted, but sources said its current fund, Patron Capital L.P. Fund IV, was more than two-thirds invested and there are expectations it could be 80 percent invested in the next two months.

According to sources, the firm is currently conducting a review of advisors to work on the follow-on fund and some large strategic investors are said to have already been in contact with the company.

Patron has been considering alternative structures to the traditional private, closed ended opportunity fund such as a public vehicle given the apparent success of real estate IPOs witnessed in Europe in recent months. However, it is thought to be favoring a continuation of the Patron fund series.

Fund V would mirror the strategy of Fund IV which the company closed in September 2012. That vehicle attracted €780 million of commitments from limited partners as well as €320 million of co-investment capital. Investors included universities, major institutions, private foundations and high net worth individuals in Europe, North America, Asia and the Middle East. Fund V is expected to be roughly the same size or possibly slightly larger.

Upon closing Fund IV, the company said the fund “significantly exceeded expectations”, creating one of the largest funds within the Patron Capital portfolio. Monument Group acted as the exclusive placement agent in that instance.

One of the latest deals announced for Fund IV was the acquisition in May this year of ‘Project Drive’, for which Patron paid around €49 million for a predominantly Irish loan portfolio including Northside Shopping Centre in Dublin. The seller was Ireland’s National Asset Management Agency (NAMA).

Patron is led by managing director Keith Breslauer and chief operating officer, Shane Law. It employs an investment team of around 39 people.