KGAL expands its renewable footprint in 2017

The KGAL Group infrastructure asset class closed 2017 with assets under management of €2.5 billion. With KGAL ESPF 4, the company has successfully established its first renewable energy fund pursuing a core plus strategy. The KGAL ESPF 4 first close took place in June 2017.

In 2017, KGAL’s infrastructure division focussed on widening its international

investor base and concentrating on selected markets for wind, solar and hydro

investments. “We have recalibrated our strategy, consolidating our leading

market position in renewables in selected countries,” explained Michael Ebner,

spokesman for the KGAL Investment Management GmbH & Co. KG Executive

Board, who is responsible for the infrastructure asset class. He added that the

investors are seeking returns that are no longer risk-appropriate in some highly

developed markets such as Germany, hence we have established KGAL ESPF4

as an investment product to suit the investors demands.

Growth from solar in southern Europe and wind in Scandinavia

KGAL strengthened its market position in Sweden in 2017 by purchasing four

wind farms, which increased its total output to more than 1,000 MW. Michael

Ebner explained that the objective for 2018 is to acquire further Scandinavian

projects, whilst Spain, Italy and Portugal will be the focus for developing further

the photovoltaics portfolio. KGAL also plans to make additional acquisitions in the

hydropower segment, following on from the purchase agreement for a project in

Norway with an output of 41 MW which concluded in September 2017.

Second close of KGAL ESPF 4 expected in Q2 2018

“We announced the first close of KGAL ESPF 4 at €255 million last year, with four

major European institutional investors, including the European Investment Bank,”

explained Douglas Edwards, member of the KGAL Capital GmbH & Co. KG

Executive Board. “We are proud to report that a very positive trend in investor

commitments is developing as we approach the second close in Q2 2018.” KGAL

ESPF 4 is a SICAV SIF vehicle set up in Luxembourg and pursues a core plus

investment strategy.

 

Attachment

• KGAL_Infrastruktur_waechst_in_Frankreich_Skandinavien_deutlich_2017_14-03-2018.pdf
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