Patron Capital Raises €860m for Latest European Real Estate Fund Targeting Distressed Investments

Patron Capital, a leading European investment firm, has successfully secured €860 million in capital commitments for its latest real estate fund, Patron Capital VII. This fund is specifically targeting distressed and undervalued investments across Western Europe.

The impressive capital raised for Fund VII includes over €200 million of Patron discretionary co-investment capital for larger opportunities. The majority of the commitments came from existing investors, with 76% of the total capital secured from Patron’s investor base. Notably, investors from the US and Canada led the way, followed by those from Asia Pacific, Europe, and the Middle East. Pension funds, sovereign wealth funds, endowments, foundations, and family offices are among the key investors in this fund.

Fund VII will maintain Patron’s investment strategy of opportunistically targeting distressed and undervalued investments related to property in Western Europe. The fund will invest across various sectors in property-backed corporate investments and individual properties, with deal sizes ranging from €30 million to €80 million in equity.

This is the seventh vintage in Patron’s flagship series, aiming to achieve returns of 17% to 20% gross internal rate of return over a four-to-five-year investment horizon. So far, Fund VII has deployed 10% of its investment capacity and has completed several investments in Western Europe, projecting an 18% return on investment.

Keith Breslauer, the managing director and founder of Patron Capital, expressed confidence in the current real estate market opportunities. He stated, “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.”

The success of Patron Capital VII reflects the confidence in the firm’s ability to identify and capitalize on lucrative real estate opportunities in Europe. The fund’s focus on distressed and undervalued investments highlights the commitment to delivering strong returns for its investors in the dynamic European real estate market.