Patron eyes Europe with new fund

Patron Capital, the real estate-focused private equity group, has raised €880m (£633.5m) for a new fund, as investors continue to tap into distressed debt opportunities in Europe. Patron said Fund IV will target distressed property companies, hotels and leisure and healthcare. It aims to generate a rate of return of 17 per cent to 22 per cent gross over three to five years. The group has already invested 15 per cent of the fund, with initial investments including its £38m acquisition of seven luxury hotels that were formerly part of the Von Essen group and the Motor Fuels Group chain of petrol stations.