The Holding Company of a pan-European renewable energy fund
KGAL ESPF 5 Holding S.à r.l. is a wholly owned subsidiary of KGAL ESPF 5 SICAV-RAIF S.C.S. (“KGAL ESPF 5”), a specialised investment vehicle, exclusively focused on the European renewable energy generation market, a substantial and rapidly evolving growth market. KGAL ESPF 5’s classification as an impact fund under Art. 9 of the SFDR is the logical consequence of its focused ESG investment policy. By bringing additional renewable generation capacity to the market, KGAL ESPF 5 supports the decarbonisation of the electricity generation mix in Europe and lays the foundation for the energy transition, which aims to decarbonise all sectors beyond electricity. All investments shall be made through KGAL ESPF 5 Holding S.à r.l.
Investment strategy
With the focus on late-stage development projects in mature markets across Europe, we create additionality, and consequently impact, by bringing new renewable generation capacity to the market in order to support the continuing decarbonisation of the European power generation fleet. Together with selected investments in markets characterised by a higher degree of GHG-emitting generation capacity, we also fully support the target of the Paris Climate Agreement to limit global warming by supporting the respective countries in achieving their individual renewable generation targets. KGAL ESPF 5 Holding S.à r.l. is committed to creating a portfolio with a minimum of 90% of sustainable investments. A minimum of 67% thereof shall be EU-Taxonomy aligned investments. The ESG-approach is deeply incorporated in the renewable energy generation management strategies throughout the life cycle of the investments.
Portfolio
It is our belief, that diversification adds stability to an investment. Consequently, KGAL ESPF 5 invests in electricity generating projects utilising different technologies, with a specific focus on photovoltaic and onshore wind, located in different jurisdictions across Europe. Investments in niche technologies and related infrastructure will complete the portfolio’s composition. In addition, by using different routes to market for the electrical output and including assets at different life stages, the portfolio will be diversified along all three dimensions to create stability. Together with the active asset management approach, this enables value creation.
Structure
KGAL ESPF 5 Holding S.à r.l. is a limited liability company (société à responsabilité limitée) under the laws of the Grand Duchy of Luxembourg, headquartered in Luxembourg. Its objective is to hold and finance stakes in the above projects in different countries across Europe. The sole shareholder is KGAL ESPF 5 SICAV-RAIF S.C.S., a Luxembourg based reserved alternative investment fund exclusively open to professional investors. KGAL ESPF 5 Holding S.à r.l. also provides central services to its subsidiaries such as implementing the investment strategy, financing activities, procurement services including debt arrangements, structuring of power offtake agreements or supporting the divestment process during the life span of the fund.
