Patron Capital Raises in Excess of ¥143 Billion ($920 Million) for Fund VII as Japanese Investors Look to European Real Estate
May 13 2024 - 2:00AM
Business Wire
Patron Capital, the pan-European institutional investor focused
on property-backed investments, has closed its seventh flagship
fund, raising in excess of ¥143 billion, including more than ¥33
billion of Patron discretionary co-investment capital for larger
opportunities.
Of the capital raised for Patron Capital, L.P. VII (‘Fund VII’),
76% came from Patron’s existing investor base and existing
relationships, with many commitments coming from Japanese investors
looking to take advantage of strong value-add investment
opportunities in European real estate. Around 12% of the capital
raised for Fund VII came from Japanese investors including pension
funds, endowments, foundations and family offices.
Fund VII 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. The fund will invest across a
range of sectors in property-backed corporate investments as well
as individual properties. Patron’s typical deal size ranges from ¥5
to ¥13 billion in equity, enabling Patron to deploy its granular
approach and target opportunities that are off market or not
accessible to other investors, while Patron is able to realise
larger opportunities using its co-investment capital.
This is the seventh vintage in Patron’s flagship series, which
targets returns of 17% to 20% gross IRR and a 1.6x-2.0x gross
equity multiple on invested capital over a four-to-five-year
investment horizon. However, Patron regularly exceeds these
numbers, highlighting the firm’s ability to add value through asset
management and time acquisitions and disposals for the best
results.
Patron has already started to deploy capital from Fund VII,
using approximately 10% of the Fund’s investment capacity to
complete a number of investments across a range of assets classes
in western Europe, and is projecting a 18% return on its
investments.
Keith Breslauer, Managing Director and founder of Patron
Capital, said: “In the 25 years since Patron Capital was
founded, we have worked successfully through many cycles and can
say with confidence that the current opportunity set in real estate
is one of the most exciting I have seen. However, while many can
see distressed and undervalued assets coming to the market, few
have been able to raise the capital needed to execute. Raising the
capital for Fund VII at the pace we have and with a high proportion
of re-ups from our longstanding investors many of which are
Japanese based, is a very strong endorsement of Patron as the
manager of choice for value-add and opportunistic real estate in
Europe.
“Looking ahead, we shall continue deploying this capital using
our granular approach, with our deep relationships across Europe
providing access to opportunities that others cannot realise, while
maintaining conversations with prospective investors who wish to
use our expertise to execute on larger transactions through
co-investment.”
Notes to Editors
About Patron Capital Partners
Patron represents approximately €5.2 billion ($5.5 billion) of
capital raised across several funds and related co-investments,
investing in property, corporate operating entities whose value is
primarily supported by property assets and distressed debt and
credit related businesses.
Since it was established in 1999, Patron has undertaken more
than 200 transactions across 106 investments and programs involving
over 9 million square metres in 17 countries, with many of these
investments realised.
Investors represent a variety of sovereign wealth funds,
prominent universities, major institutions, private foundations,
and high net worth individuals located throughout North America,
Europe, Asia and the Middle East. The main investment adviser to
the Funds is Patron Capital Advisers LLP, which is based in London,
and Patron has other offices across Europe including Barcelona and
Luxembourg; the group is comprised of 63 people, including a
37-person investment team.
Further information about Patron Capital is available at
www.patroncapital.com
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Henry Columbine Polly Warrack James Carnegie Laurence Hill SEC
Newgate t: +44 (0)7808 541191 e: patron@secnewgate.co.uk