Patron Capital closes fourth fund on €895 million(2)

The London-based firm has closed its largest fund so far after receiving commitments of nearly €900 million from a range of US and European investors.

Patron Capital, the Europe-focused private equity real estate firm, has closed its fourth fund with total commitments of €895 million ($1.17 billion).

Patron, a London-based firm founded and run by Keith Breslauer, said Fund III had been four times oversubscribed. “While we appreciate this tremendous interest, the size of the fund has not been increased as Patron is determined to remain specialist and focused on opportunistic investments that are within the strategy,” Breslauer said.

The strategy is to target undervalued properties across western, central and eastern Europe, including those that are in distressed situations or deemed non-core by their parent company.

It is the same as Patron Capital Captive Fund, Patron Capital LP I and Patron Capital LP II, which delivered an average internal rate of return of 64 percent.

Previous Patron investments include the Hotel Arts complex in Barcelona, UK independent bulk liquid and gas company Simon Storage, and the Radisson SAS Carlton hotel in Bratislava.

The €93 million Patron Capital Captive Fund was fully invested in one deal and returned €226 million. The €98 million Fund I was invested in 13 deals, and has so far returned €151 million with more divestments to come. Fund II, the largest of the three at €329 million, has so far invested €233 million in 13 deals and has sold €2 million.

Outside the three funds, the firm owns a majority stake in listed French real estate business Vectrane worth €277 million, which Patron floated on the French stock exchange as a real estate investment trust.

Monument Group acted as placement agent for Patron, which hit the fundraising trail in December.

The firm which was founded in 1999, is headquartered in London, and has associate offices in Barcelona, Milan and Warsaw.