Stockholm (NordSIP) – One of the first impact funds to be incorporated under Article 9 of the EU Sustainable Finance Disclosure Regulation (SFDR), the directive’s highest sustainability category, saw the light of day on August 10. KGAL Investment Management GmbH & Co. KG, a leading German investment and asset manager focusing on real assets, announced this week the launch of a renewable energy impact fund, KGAL ESPF 5.
According to the press release, the new fund will invest primarily in renewable energy generation through photovoltaics, onshore and offshore wind power, and hydropower.
“The European investment market for renewable power generation offers immense growth and diversification potential,” comments Michael Ebner, Managing Director and Head of Sustainable Infrastructure.
“We are very well placed to take advantage of this opportunity based on our proven track record in renewables. We entered this space in 2003, which makes us one of the pioneers of the energy transition and have acquired over 150 photovoltaic plants, wind farms and hydroelectric power plants on behalf of our clients since then – and to date, our total investments amount to more than EUR 3.2 billion across ten European countries,” he explains.
The decision to launch KGAL ESPF 5 is in response to mounting institutional demand for this type of investment. “For investors, sustainability and impact measurement are increasingly essential, and we at KGAL can fully relate to this as sustainability aspects are an integral part of our business and risk strategy,” says Christian Schulte Eistrup, head of KGAL’s international institutional business.
“We will not stop there as we will continue to play our part to decarbonise society and ultimately protect our planet,” concludes Florian Martin, Managing Director and Head of the firm’s client business.
Portraits courtesy of KGAL