Patron Capital, the specialist pan-European opportunistic and distressed asset investor, has raised over EUR880m, which includes a EUR100m dedicated discretionary co-investment pool, for its new fund Patron Capital IV.
The fundraising significantly exceeded expectations, creating one of the largest funds within the Patron Capital portfolio. Monument Group acted as the exclusive placement agent.
Fund IV attracted blue chip investors comprising many existing investors as well as over 40 per cent of new investors, including prominent universities, major institutions, private foundations and high net worth individuals located throughout Europe, North America, Asia and the Middle East.
Fund IV will acquire assets on its own as well as co-investing its war chest of EUR3bn with partners and banks. The fund has been established to continue the same strategy as Patron’s prior funds, opportunistically targeting distressed and undervalued investments, directly or indirectly related to property, primarily across Western Europe. The fund will continue to target distressed property and property backed corporate investments including property companies, hotels and leisure and healthcare, which fit Patron Capital’s risk-adjusted return characteristics.
The fund’s objective is to generate superior, absolute and risk-adjusted returns through a diversified portfolio of acquisitions. Investments are targeted with the aim of generating a 17 per cent to 22 per cent gross IRR over a three to five year investment horizon.
Fifteen per cent of Fund IV has already been deployed, with initial investments including Luxury Family Hotels (the distressed Von Essen properties), the Motor Fuels Group chain of retail/petrol stations and the distressed Uni-Invest CMBS transaction in the Netherlands.
Keith Breslauer (pictured), Patron Capital’s founder and managing director, says: “We are delighted with the excellent response we have received to Fund IV. The banking crisis, recession and real estate downturn has created exceptional conditions for Patron to source and execute investments with highly attractive absolute and risk-adjusted return potential over the fund’s investment period. There is a plethora of opportunities in Europe at this point in time and the EUR880m we have attracted will enable us to pursue our clear thematic approach.”