KGAL Investment Management’s new core-plus fund, KGAL Impact Fund ESPF 5, has completed a first closing with more than €260 million ($294 million) of equity, representing more than half of its fundraising target.
The pan-European renewable-energy fund was backed by insurance companies, pension funds, impact investment managers and family offices from across Europe. Existing clients represent two-thirds of the first closing, with additional capital coming from new clients. KGAL said nearly 20 percent of the committed capital is expected to be invested before the end of this year.
KGAL ESPF 5 will invest primarily in wind power and photovoltaics across Europe in compliance with the strict Article 9 regulations. Other renewable-energy generation and storage technologies, as well as grid infrastructure, may also be added. The portfolio will be broadly diversified across technologies, regions and asset life cycles.
“The impact status of ESPF 5 is a real game ch