The Holding Company of a pan-European Energy Transition Fund
KGAL ESPF 6 Holding S.à r.l. is a wholly owned subsidiary of KGAL ESPF 6 Green Hydrogen Fund SICAV-RAIF S.C.S. (“KGAL ESPF 6”), a specialised investment vehicle, through which investors can contribute to decarbonisation and simultaneously invest in the attractive growth market of energy transition. The Fund focuses on investments in the field of sector coupling technologies based on sustainable energy sources that contribute to decarbonizing energy consuming industries, such as the heat or the transport sector. Therefore, KGAL ESPF 6 is classified as an impact fund under Art. 9 SFDR and aims to invest exclusively in assets with measurable positive impact on greenhouse gas emission reduction while avoiding harmful effects on other relevant dimensions of sustainability. All investments shall be made through KGAL ESPF 6 Holding S.à r.l.
Investment strategy
Employing KGAL Groups 20 years of successful asset management experience in the renewable energies and sustainable infrastructure market, KGAL ESPF 6 now takes the next logical step into the market of sector coupling technologies and green hydrogen. KGAL ESPF 6’s strategy is to invest into assets in the field of sector coupling technologies that are based on sustainable energy sources and hence support to achieve the greenhouse gas reduction targets of the European Commission and a transition to a zero-emission society. The investment focus encompasses assets of direct electrification, such as power-to-mobility and power-to-heat, as well as projects of indirect electrification through green hydrogen and its derivatives whenever direct electrification is technically and commercially not possible or efficient. In addition, waste-to-energy projects will be considered to the extend they are sustainable and supporting level 3 of the European recycling directive.
Portfolio
It is our belief, that diversification adds stability to an investment. Consequently, KGAL ESPF 6 aims a diversification across assets, sectors, countries and life cycles. KGAL ESPF 6 is building on KGAL’s well-established networks in Western, Southern and Northern European markets while at the same time identifying new opportunities in selected non-European OECD countries. KGAL ESPF 6 pursues a co-investment strategy alongside with relevant project partners – such as original equipment manufacturers, project developers, and offtakers – in order to ensure an optimized risk sharing and alignment of interest of the key stakeholders.
Structure
KGAL ESPF 6 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 6 Green Hydrogen Fund SICAV-RAIF S.C.S., a Luxembourg-based reserved alternative investment fund exclusively open to professional investors. KGAL ESPF 6 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 offtake agreements or supporting the divestment process during the life span of the fund.
