KGAL hits €255m first close on fourth renewables fund

The German asset manager has enlisted support from four European institutions as it advances towards its €500m target.

KGAL Group has reached a first close on its “core-plus” European renewables fund ESPF 4, raising €255 million for the Luxembourg-based vehicle in about a year.

The committed equity came the European Investment Bank, two Dutch pension funds represented by Netherlands-based Achmea Investment Management and a large German insurance company, the firm said.

The European Investment Bank started considering a €100 million pledge to the vehicle last May, according to a document on its website. The bank says ESPF 4 has a €500 million target.

Neither KGAL nor the EIB had responded to requests for comment at press time.

The firm describes the fund’s strategy as “core-plus”, focused “on the entire spectrum of the value chain” in the wind, photovoltaic solar and hydropower across Europe, with an emphasis on greenfield.

The vehicle is already about the size of ESPF 3, its predecessor closed on €247 million in 2013, though that fund was markedly smaller than ESPF 2, closed on €500m million in 2011. The first of the series, focused on solar, closed on €230 million in 2009.

Based near Munich, KGAL has been investing in real assets since 1968, according to its website. It had €21.5 billion under management as of end of last year, 9.3 percent of which is invested in infrastructure.