Pan-European investor Patron Capital has raised over €880m for its newest vehicle, Patron Capital LP IV.
The fund received commitments from blue-chip investors comprising existing investors as well as over 40 per cent of new investors, including universities, institutions, private foundations and high-net-worth individuals across Europe, the US, Asia and the Middle East.
Fund IV, which includes a €100m dedicated discretionary co-investment pool, will acquire assets independently as well as co-investing its €3bn war chest with partners and banks. The fund will follow the same strategy as its predecessors, targeting distressed and undervalued investments directly or indirectly related to property, mainly in Western Europe. It will continue to target distressed property and property-backed corporate investments including property, hotels, leisure and healthcare.
Patron is aiming to generate a 17 per cent to 22 per cent gross IRR over a three- to five-year investment horizon.
A portion of the fund, 15 per cent, has already been deployed following Patron's investments in Luxury Family Hotels (the distressed Von Essen properties), the Motor Fuels Group chain of retail/petrol stations and the distressed Uni-Invest CMBS deal in the Netherlands.
“There is a plethora of opportunities in Europe at this point in time and the €880m we have attracted will enable us to pursue our clear thematic approach,” commented Keith Breslauer, founder and managing director of Patron.
Monument Group acted as placement agent for the fund.