KGAL Investment Management (KGAL) today launched its first renewable energy Impact Fund, KGAL ESPF 5, adding to its ESPF product series.

This latest fund, one of the first Impact funds under Article 9, suggests the asset manager’s commitment to meeting the requirements of the EU action plan for financing sustainable growth under the Sustainable Finance Disclosure Regulation (SFDR).

KGAL ESPF 5 is aimed to give institutional investors the opportunity to pursue their financial goals and to have a positive impact on the global environment.

The decision to launch KGAL ESPF 5 is in response to the increasing institutional demand according to the firm. In particular it noted the ‘strong performance’ of its predecessor fund KGAL ESPF 4, which closed at the end of 2019 with EUR 750 million in equity commitments, supporting increasing demand from investors for new opportunities in the renewables space.

"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. That is why we are incredibly proud to launch one of the first renewable Impact Funds under Article 9, with sustainability investment being first and foremost, in response to investor demand", said Christian Schulte Eistrup, head of KGAL’s international institutional business.

 “We place huge importance on the decarbonisation of the European economy both from a corporate and an investment perspective. For example, based on our efforts to meet various climate change targets, our renewables portfolio supplied almost 1.7 million people with green energy by the end of 2020. And we will not stop there as we will continue to play our part to decarbonise society and ultimately protect our planet," added Florian Martin, managing director and head of the firm’s client business.