KGAL, an independent asset and investment manager, has held the first close of its core-plus European renewable fund ESPF 4. With €255 million ($288.9 million) of committed equity, the Luxembourg-based SICAV-SIF vehicle is in line with its fundraising schedule, having attracted large commitments from four major European institutional clients.
KGAL ESPF 4 fund was launched a year ago as a successor fund for ESPF 3. The core-plus investment strategy focuses on the entire spectrum of the value chain in the fields of wind, photovoltaic and hydropower — with a focus on greenfield investments — across Europe. Capital deployment will focus on opportunities in wind repowering, hydro-power consolidation, PV value enhancement and opportunistic power storage synergies.
Since KGAL itself also invests in the fund, the organization’s goals are in alignment with the institutional investors.
“Our own investments in the fund underline our strong belief in the fund’s strategy and the sector’s future development,” said Gert Waltenbauer, CEO of KGAL GmbH & Co. KG. “The dynamic development of renewable energy markets requires a flexible, regionally diversified investment strategy that is aligned with investment cycles.”
The fund should be completely placed by the end of 2018.