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Patron closes fund on €844m despite ‘extreme uncertainty’

Patron Capital has closed its latest fund, Patron Capital LP VI, having raised €844 million, including about €128 million of co-investment capital.

The new fund’s strategy is much the same as Patron’s previous funds: “opportunistically targeting distressed and undervalued investments, directly or indirectly related to property, across Western Europe.”

Of the €844 million total raised for the new fund, 83% came from Patron’s existing investor base and existing relationships, the firm said.

Most commitments originated in North America, followed by Asia Pacific, Europe, and the Middle East. Investors included pension funds, sovereign wealth funds, endowments, foundations and asset managers.

Patron said the fund will invest in individual properties across a range of sectors, as well as in property-backed corporate investments and credit opportunities.

Several investments have already been acquired and the fund is in the final stages of closing on several more, committing approximately 25% of its investment capacity.

“This is the seventh fund that we have closed in our 21-year history. In this time, we have established a proven track record in identifying opportunities and maximising value, built exceedingly strong relationships and, ultimately, demonstrated that we can deliver attractive returns in any economic environment,” said Patron Capital founder and managing director Keith Breslauer (pictured above).

Breslauer said that this explained why such a high proportion of existing investors and relationships were attracted, and why the final tranche of capital was secured even against a backdrop of “extreme uncertainty” due to the COVID-19 pandemic.

“The pandemic has accelerated a number of existing trends across different real estate sectors in Europe, as well as created opportunities to acquire fundamentally sound but mismanaged assets at attractive prices,” Breslauer added.