German insurer Debeka Insurance is investing up to €400m in European real assets through a newly created relationship with KGAL Investment Management.
Debeka said it has appointed KGAL to launch two evergreen funds targeting European renewable energy and sustainable, social-purpose real estate in Germany.
The renewable energy fund will focus on the generation, storage and processing of renewable energies, while the real estate fund will target investments in buildings used for health and education, public institutions, local amenities and housing.
Ralf Degenhart, CFO of Debeka Insurance, said: “This long-term direct investment in European and German infrastructure is very much in line with the sustainable orientation of our broader business strategy.
“The expansion of renewable energies contributes significantly to European energy sovereignty. In addition, social infrastructure is an investment in the foundations of our community. Both funds promise stable, long-term returns and ESG compatibility.”
Florian Martin, co-CEO of KGAL, said: “The special fund for infrastructure and climate neutrality initiated by the German government is far from sufficient to close the investment gap on its own. Additional private capital is needed. We are delighted to be taking the initiative in this, together with the Debeka Group.”
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