Mitsubishi Estate, one of Japan’s largest property firms, has acquired a controlling stake in European private equity real estate manager Patron Capital.

The investment will be made through Mitsubishi Estate Global Partners, its international asset management arm, as the Tokyo-based group continues its expansion into alternative assets.

As part of the transaction, Mitsubishi will commit approximately €600m ($642m) to Patron’s funds to support growth, including the development of its emerging credit strategy. Patron’s founder, Keith Breslauer, and his senior partner team will retain operational control and continue leading the business.

“This is not an exit – I’m not going anywhere,” said Breslauer. “We are getting long-term backing from a strategic partner that truly understands the property business.”

Founded in 1999, Patron Capital manages around €5.3bn in capital and recently closed a nearly €1bn fund. The firm already counts two Japanese LPs among its backers, a figure expected to grow with its upcoming fundraise later this year.

The deal adds to a growing trend of global asset managers acquiring stakes in European real estate investment platforms. Mitsubishi follows in the footsteps of New York Life’s Candriam, which took over Tristan Capital Partners, and Singapore’s Keppel Capital, which bought into Aermont Capital.

For Mitsubishi, the move builds on its international footprint, which includes ownership of TA Realty in the US and Europa Capital in Europe. The firm now oversees approximately $39bn in assets.

Japanese investors have been increasingly active in overseas alternatives, with recent deals from Dai-ichi Life, Nomura Real Estate, and Sotetsu Urban Creates across hedge funds, credit, and UK property.

Source: The Japan Times

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