Patron raises €844m for European property fund

Keith Breslauer

Patron Capital, the pan-European institutional investor focused on property-backed investments, said it has closed its most recent fund, raising €844 million.

This includes €128 million of co-investment capital for Patron Capital, L.P. VI (Fund VI).

Of the €844 million raised for Fund VI, 83% came from Patron’s existing investor base and existing relationships, with the majority of commitments coming from North America, followed by Asia Pacific, Europe and the Middle East.

Investors included pension funds, sovereign wealth funds, endowments, foundations and asset managers. Evercore acted as the primary placement agent.

Fund VI 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.

In recent weeks, the Fund has already completed several investments and is in the final stages of closing on several others, using about 25% of the fund’s investment capacity.

Patron Capital managing director Keith Breslauer said: “This is the seventh fund that we have closed in our 21-year history.

“In this time, we have established a proven track record in identifying opportunities and maximising value, built exceedingly strong relationships and, ultimately, demonstrated that we can deliver attractive returns in any economic environment.

“This is why we have been able to close this latest fund with such a high proportion of our existing investors and relationships, as well as bring in the final tranche of capital against a backdrop of extreme uncertainty due to the COVID-19 pandemic. 

“The pandemic has accelerated a number of existing trends across different real estate sectors in Europe, as well as created opportunities to acquire fundamentally sound but mismanaged assets at attractive prices.

“Our experienced team, granular approach and in excess of €3 billion of firepower means we are well positioned to make the most of these opportunities and we are actively looking to deploy capital.”

Patron represents €4.3 billion of capital across several funds.

Since it was established in 1999, Patron has undertaken more than 170 transactions across 84 investments in 16 countries.

Investors represent sovereign wealth funds, prominent universities, major institutions, private foundations and high net worth individuals from North America, Europe, Asia and the Middle East.