KGAL Investment Management has announced the launch of its first renewable energy impact fund.

The article 9 KGAL ESPF 5 fund will invest in renewable energy generation through photovoltaics, onshore and offshore wind power, and hydropower. The fund will focus on the EU-27 and the EFTA member states and aims to achieve a target return (net IRR) of 7-9 percent over its 10-year term.

Carsten Haubner, Portfolio manager of KGAL ESPF 5 adds: “We are excited about the opportunities ahead as our deal pipeline is extremely buoyant. The three pillars of our investment strategy remain unchanged – we will combine the acquisition of project rights in the development and construction phase with value-add approaches for undervalued existing assets and tapping new markets in the develop-and-hold area – to help investors achieve their objectives. As ever, our primary focus is to maintain a balanced risk-return profile for our institutional investors.”