A UK local authority has become the first local government pension scheme (LGPS) to back KGAL’s fourth European renewable energy fund.
German asset manager KGAL said the London Borough of Newham Pension Fund is one of five European investors who have recently committed €127m to KGAL ESPF 4.
The participants in the second closing include other institutional investors from Germany, France and the Netherlands.
Newham is the first LGPS client and the first UK investor for KGAL, the manager said.
In July last year, KGAL said four of its major European institutional investor clients were among those committing equity to its fund, which raised €255m at first close.
In KGAL ESPF 4, almost three-quarters of the equity committed to date of €382m have come from non-German investors, the manager said.
In addition to Newham, two insurers, an investment manager and one other pension fund participated in the second closing, KGAL said.
Douglas Edwards, a member of the board KGAL Capital, said: “We are delighted to have been appointed by Newham. We will be working closely with other Local Government Pension Schemes as they also consider the infrastructure allocations.”
Launched in 2016, KGAL ESPF 4 has an equity target of €500m and a hard cap of €600m.
The final closing for KGAL ESPF 4 is planned for the end of 2018.
