KGAL Group is a leading, independent investment and asset manager with an investment volume of €16 billion. The investments focus on long-term capital investments for institutional investors in real estate, sustainable infrastructure and transportation.
In sustainable infrastructure, KGAL Group is one of the pioneers in the investment market and manages around €3.5 billion AuM. Since entering the market in 2003, we have acquired more than 150 photovoltaic plants, onshore and offshore wind farms as well as hydropower assets across Europe. These plants have more than 1,4 GW of capacity and deliver strong as well as stable returns for our investors in five institutional,six retail funds as well as three single mandates. KGAL’s experienced in-house renewables team consisting of over 60 dedicated individuals add value at each step of the investment life-cycle, i.e. from origination, project implementation, PPA negotiation, technical and commercial management to re-marketing.
Investment process & research
Integrated fund & asset management
The quality of KGAL funds is based on the experience of our in-house experts. They professionally assess risk and appreciation potential, and actively and continuously manage the assets throughout the life of the funds – from acquisition to exit.
Transaction management
- continuous market presence and monitoring
- ensuring access to relevant markets
- origination and exiting of investment opportunities
- implementation of closed transactions
Portfolio management
- specification of clear strategic investment criteria for funds
- rigorous benchmarking
- constant research and adaption to market changes
- active composition of the portfolio
Risk management
- on-going identification, measurement, control and reporting of relevant risks
- regular monitoring of key parameters at market, fund and investment levels
- development of recommended actions
Asset management
- responsibility for professional management as well as performance at asset level
- implementation of efficient measures to maintain and improve performance
1. Our vision & beliefs
Our Vision is to be a leading pan-European Investment and Asset Manager in Real Assets. Our Mission is to bring the vision to life by pursuing the following guidelines:
Quality Leadership
- enhancing customer value
- result driven
- setting new standards for the market
- continual improvement process
- long-term experience l outstanding track record
- expertise with proven market access
Relationship
- Client first: customer satisfaction is our priority
- strong, long-term and transparent relationships
- dialog-oriented
- service-oriented
- highly qualified team
Sustainability
- ecological
- economical
- social
Straightforwardness
- precise
- trustworthy
- comprehensible
- comparable
- confidential
2. Strategies and products
Stability was one of the key characteristics that first attracted us to European sustainable infrastructure in 2003. Now - 20 years on – diversification is the driving factor.
We think of diversification across three dimensions:
- Asset life stages. There are multiple opportunities to invest through the life of an asset – from development to operation. Moreover, just about every investable project has room for improvement through imaginative asset management, which can boost total returns. The ability to invest at different stages provides growth opportunities for institutional investors.
- Offtake schemes. As feed-in tariffs disappear from view in many countries, they’ve been replaced by a varying mix of auctions, power purchase agreements (PPAs) and merchant pricing. This creates more options over the sale of generated electricity.
- Technologies. From PV panels to onshore wind, from hydro to geothermal , green hydrogen and energy transition technologies there is a large and growing field of asset categories. In addition, within each asset type there are multiple technologies. This is real diversity, of the sort that only private markets investment can offer.
Combined, they create a portfolio of resilient, cash-generating and sustainable assets delivering the consistent and robust return profile and at the same time contributing to the global low carbon economy. KGAL invests in diversified portfolios comprising wind, water and solar energy,as well as green hydrogen and energy transition technologies and utilises return opportunities through early entry into the value chain of projects while simultaneously continuing to manage risks.
What marks KGAL out is its ability to maintain and add value through an active asset management approach. Half of KGAL’s strong sustainable infrastructure team are asset management specialists and they work with local partners to manage and devise ways of maintaining or boosting the investment returns for every asset in their care.
Asset management plays two roles:
- Maintenance – managing risk and maintaining value.
- Alpha generator – unlocking previously unavailable investment returns.
Additionally, one of the biggest active asset management opportunities could come from financial enhancements – with optimised structuring, more attractive debt arrangements and other pragmatic approaches. KGAL’s specialists know how to get the best out of contractors on the ground – irrespective of location – in often challenging circumstances.
KGAL ESPF 5 pursues a core plus strategy, to establish a balanced and diversified portfolio across asset life-stages, European countries, technologies and offtake schemes. KGAL ESPF 5 is classified as an SFDR Article 9 Fund. Over the term of the fund, we expect the assets enabled by the fund will lead to a GHG emissions saving of over 17,000,000 tons over their respective lifetimes (CO2 equivalent).
KGAL ESPF 6 is KGAL’s sixth sustainable infrastructure vehicle for institutional investors, and the first fund focusing on energy transition.
With KGAL ESPF 6, investors shall participate in the on-going European energy transition. The overall investment policy of the Fund will aim to achieve regular income and capital appreciation for LPs through investments in sector coupling assets - such as power to hydrogen (and its derivatives), power to mobility, power to heat and waste to energy that are supporting the transition to an energy supply based on renewable resources.
KGAL ESPF 6 is classified as an article 9 product under the Sustainable Finance Disclosure Regulation (“SFDR”)
Compliance statement
The stated information is for general information purposes only. The information is provided by KGAL (“KGAL or KGAL Group”) and while KGAL endeavours to keep the information up to date and correct, KGAL makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the presentation or the information, products, services, or related graphics etc. contained in the presentation for any purpose.
