Patron Capital Raises €844m for Fund VI
Main Photo: The Generator Berlin, previously owned by Patron Capital
Date: January 2021
Location: Western Europe
Name: Patron Capital Fund VI
No. of Keys: Over the years, Patron has transacted and realised over 9,000 keys in partnerships with a wide range of international operators.
The Fund: Patron Capital, a pan-European institutional investor focused on property-backed investments, has closed its most recent fund, raising €844m (US$1.038 billion), including approximately €128m (US$157 million) of co-investment capital for Patron Capital, LP VI.
Of the total €844m raised for Fund VI, 83 per cent came from Patron’s existing investor base and existing relationships, with the majority of commitments coming from North America, followed by Asia Pacific, Europe, and the Middle East. Investors included pension funds, sovereign wealth funds, endowments, foundations and asset managers. Evercore acted as the primary placement agent.
Fund VI 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 in individual properties across a range of sectors, as well as in property-backed corporate investments and credit opportunities. In recent weeks, the Fund has already completed several investments and is in the final stages of closing on several others, using approximately 25 per cent of the Fund’s investment capacity.
Keith Breslauer, Patron Capital’s founder and Managing Director, says: “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. This is why we have been able to close this latest fund with such a high proportion of our existing investors and relationships, as well as bring in the final tranche of capital 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. Our experienced team, granular approach and in excess of €3 billion of firepower means we are well positioned to make the most of these opportunities and we are actively looking to deploy capital.”
THPT Comment: Whilst not specifically aimed at hotels, we know Patron is fond of the sector, having recognised the breakthrough Bryan Duffy made when he started the new-vogue style of hostels, with the Generator with two units in London and Berlin in 1995, acquired by Patron in 2007 who expanded the concept to 11 properties, before selling the group to Queensgate Investments in 2017, for €450m.
First Seen: Property Funds World
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