Patron Capital, the pan-European private equity real estate firm, has closed its fifth fund after raising €949 million, including €149 million of co-investment capital.
The opportunistic vehicle, Patron Capital V, has attracted a range of investors including pension funds, sovereign wealth funds, endowments, foundations and asset managers from nine countries. The bulk of commitments, the firm said, have come from North America, followed by Europe, Asia Pacific and then the Middle East.
The fund, which had an original target of €750 million, will continue the same investment strategy as its predecessors, targeting opportunistic, distressed and undervalued investments in Western Europe across a number of sectors.
Patron’s founder and managing director, Keith Breslauer, said the total demonstrates not only the firm’s fundraising capability during troubled times, but also the confidence of its investors post-Brexit.
“With returns over our 17-year history averaging around 15 percent, we have proven experience of identifying opportunities and maximizing value,” he said. “The fact that we closed this fund in the lead up to and immediate aftermath of Brexit – and were significantly oversubscribed – highlights investors’ confidence in our ability to deliver strong returns in any economic environment,” he added.
The firm’s previous fund, Paton Capital IV, surpassed its €750 million target when it was closed in 2012 with a total capital raise of €880 million. Patron has already returned over 60 percent of capital invested to date and is projected to provide an IRR of over 25 percent from the vehicle.
“Our new fund alone gives us the financial firepower to invest in around €3 billion of assets and our experienced and hands-on team means we are very well placed to make the most of the significant distressed opportunities that exist in Western Europe,” he said. “Having already made a number of investments across various countries and sectors, we are actively looking to deploy capital, and have several further opportunities currently under consideration,” Breslauer added.
A Patron spokesman confirmed that around €164 million has already been deployed from Patron Capital V and its co-investment pool, with investments so far including residential, office and retail assets in the UK, France, Germany, Ireland, Portugal and Spain.
Greenhill & Co acted as the placement agent.