Edward Bates has left European private equity company Doughty Hanson after three years as co-head of Real Estate. Based in Paris and London, Bates had joined the company in 2007 to replace John Howard and lead its growth in continental Europe, supporting fellow co-head Julian Gabriel who is based in the London office. After Bates' departure, Gabriel has taken over the management of the entire real estate platform.

Insiders say Bates' decision to part with the company at end-2010 was a result of differences of opinion with new CEO Stephen Marquardt in the running of the real estate business and in the future management of Doughty Hanson's next, yet to be raised fund Doughty Hanson European Real Estate Fund III.

Bates, who previously worked for almost a decade for Orion Capital Managers, is the third high-profile real estate boss leaving Doughty Hanson's business after the departure of Marc Mogull in 2005 to set up rival firm, Benson Elliot Capital Management and the exit of John Howard in 2007. The London-based firm has just over 20 people in its real estate team.

Neither Bates nor Doughty Hanson were available for comment.

The loss of one of Doughty Hanson's dealmakers comes at a time when the company needs to start fundraising for its third European real estate fund. Doughty Hanson's Fund II closed in 2005 with EUR 590 mln of equity commitments and is believed to be out of its investment period.