Patron Capital tees up $1bn-plus Europe fund

The London-based private equity real estate firm has appointed placement agent Monument Group to raise Patron Capital LP Fund IV, which could be one of Europe’s largest opportunity funds in the market this year.

Patron Capital, the London-based private equity real estate firm, is readying a $1 billion-plus European opportunity fund to take advantage of deals in the UK and on the Continent.

Patron, which was founded by managing director Keith Breslauer in 1999, has appointed Monument Group, the Boston and London-based placement agent, to advise and help raise the equity, according to PERE sources.

The forthcoming fund, Patron Capital IV, is expected to officially launch later this year with a similar target to the predecessor, Patron Capital III, which raised a total of €895 million ($1.2 billion) in 2007.

Patron’s third fund was four-times oversubscribed according to Breslauer at the time of the fundraise, with investors being US and European based universities and endowments, foundations and high net worth individuals. It has gone on to invest in a broad array of asset classes and styles. The most recently publicised deal for Patron was an agreement with Australian shopping centre developer Westfield to acquire the long-term leasehold and subsequently enter into a turnkey development agreement for the delivery of a Holiday Inn and Staybridge Suites at the site of the London Olympics.

Patron’s next fundraise should be one of the largest opportunity funds in the market – if not the largest – in Europe especially given the dearth of funds at the larger end of the capital raising spectrum being raised in the region.

Since helping to raise Patron Capital III, Monument’s successes have featured raising $460 million for Phoenix Asia Real Estate Investments IV focussed on Greater China and Japan, $2.54 billion for Beacon Capital Strategic Partners VI, $794 million for Dune Real Estate Fund II, and $590 million for Berkshire Multifamily Value Fund II.

Patron and Monument declined to comment.