Patron Capital closes on 895m

Patron Capital, a London-headquartered private equity firm focused on European property assets, has raised €895m for its third fund.

Patron Capital III was officially launched in December 2006, attracting a mix of both existing and new investors. Returning investors accounted for 65% of the total fund size. There are approximately 95 investors in Fund III, including 20 top US universities, around15 foundations and over 30 family offices.

The Patron team will continue to target investment opportunities in both pure property and corporates with property assets, typically investing between €30m and €60m. In particular it will aim to acquire undervalued businesses with underlying property below intrinsic asset value; properties encumbered by complex situations of all types; property assets below intrinsic value deemed non-core by their parent company; and distressed properties or property supported assets below fundamental value.

Keith Breslauer, Managing Director of Patron Capital Limited, said, “There has been exceptional demand for Fund III both from investors in Patron Capital I & II and from an array of new investors, with Fund III being approximately 4x 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 strategy.”

The firm’s first fund, a €98m vehicle, is now fully invested on 13 investments. The fund closed in July 2002 following a 2001 launch. Patron Capital II closed in October 2004 October 2004 on €329m, and is approximately 85% invested. Combined with the Patron Capital Captive Fund, Patron has generated a 64% IRR and 2.2x return for its investors.