KGAL renewable energy fund raises EUR 255m

KGAL has announced the first closing of its core plus European renewable fund ESPF 4. With €255 million (US$294 million) of committed equity, the Luxembourg-based SICAV-SIF vehicle has attracted large commitments from four major European institutional investors.

KGAL ESPF 4’ s core plus investment strategy focuses on the entire spectrum of the value chain in the fields of wind, photovoltaics and hydropower – with a focus on greenfield investments – across Europe. Capital deployment will focus on opportunitites in wind repowering, hydro power consolidation, PV value enhancement and opportunitistic power storage synergies.

For the European Investment Bank, two Dutch pension funds, represented by Achmea IM, and a large German insurance company, their commitment to the fund represents their continuing engagement and support for the European renewable energy sector.

Michael Ebner, Speaker of the Management Board of KGAL Investment Management and responsible for infrastructure said:

“With our optimised risk-return profile, we are harnessing our substantial asset management know how in renewable energy assets, as well as our extensive experience in deal sourcing and project acquisition.”

Since KGAL itself also invests in the fund, the organisation’s goals are in alignment with the institutional investors. Gert Waltenbauer, CEO of KGAL GmbH & Co. KG emphasised:

“Our own investments in the fund underline our strong belief in the fund’s strategy and the sector’s future development. The dynamic development of renewable energy markets requires a flexible, regionally diversified investment strategy that is aligned with investment cycles. We determined these trends and translated them into a strategy that offers attractive, risk-free return on investment.”

The fund should be completely placed by the end of 2018.