Despite market turbulence, KGAL exceeded its earnings target in the past financial year, the asset manager said.
Highlights from 2023 include the renewable energy flagship funds KGAL ESPF 4 and ESPF 5, which continue to outperform expectations, it said.
In 2023, the Article 9 Impact Fund KGAL ESPF 5, which has grown to €334m in equity, made acquisitions in Germany, Poland and Greece and is continuing to raise equity.
The first Italian solar park from the portfolio is now connected to the grid, with a 59MWpark in Germany to follow shortly.
The final fund closing of KGAL ESPF 5 is scheduled for autumn 2024.
The green hydrogen fund KGAL ESPF 6 has used funds from its first closing to invest in a promising hydrogen-based e-kerosene production facility in Denmark, benefitting from binding quotas for climate-neutral aviation fuels in the EU.
Meanwhile, German development bank KfW commissioned KGAL to manage its €270m PtX Development Fund for green hydrogen projects in emerging markets.
However, high interest rates had a negative impact on the entire real asset sector last year and KGAL’s new business volume also declined from the previous year, at €873m.
KGAL co-chief executive Florian Martin (pictured) said: “Nevertheless, we were able to achieve very good financial results in 2023.
“It is extremely important for our clients that we, as their asset manager, come through the crisis with confidence and stability.
“Thanks to our prudent financial management, we have an excellent basis for focusing intensively on emerging megatrends, such as artificial intelligence, and to take advantage of new opportunities.”
KGAL expects the market to pick up over the course of this year.
KGAL co-chief executive André Zücker added: “With inflation and interest rates having peaked, real assets come back to the fore.
“In 2024, we will continue to invest in our in-house expertise and digital transformation.
“After all, the product quality and a clear focus on clients’ needs such as ESG will be even more crucial to our success as an asset manager in the future.”