KGAL reports over €1 billion in transactions for 2024 and expands investment strategy for 2025

KGAL recorded over €1 billion in transactions across renewable energy, aviation, and real estate in 2024, despite a challenging market environment. The company remains optimistic for 2025, focusing on new investment strategies and continued portfolio expansion.

The year presented economic headwinds, but according to Co-CEO Florian Martin, the market also offered opportunities in renewable energy and real estate, which the company actively pursued. Co-CEO André Zücker emphasized that active portfolio management across asset classes has allowed KGAL to generate strong returns, at times reaching double-digit percentages.

Institutional investors have been cautious, particularly in allocating equity capital, as many are still assessing the effects of interest rate shifts on their portfolios. Despite this, KGAL invested more than €1 billion in sustainable infrastructure, aviation, and real estate in the first year under its dual leadership model. The company’s broad asset class diversification and tailored investment solutions, including club deals and single accounts, helped maintain resilience.

To strengthen operations, KGAL has expanded digitalization and integrated artificial intelligence into data-driven investment and customer service processes. New sales management strategies have also been implemented to improve client engagement.

Expansion into Renewable Energy and Emerging Markets

KGAL has been investing in renewable energy for over 20 years, supporting the energy transition through market-driven solutions. Its ESPF fund series, which manages a €3.7 billion portfolio of solar and wind farms, has developed nearly 1.7 GW of renewable energy capacity across Europe. In 2024 alone, six new projects with a total capacity of 377 MW were brought online.

In addition to solar and wind energy, KGAL has expanded into green hydrogen and battery storage. Through flagship projects such as the Baltic Sea port of Lubmin, the KGAL ESPF 6 fund is involved in green hydrogen production and transport across Europe. The KfW PtX Development Fund, managed by KGAL, has also allocated its first investments to green hydrogen projects in Egypt and Morocco.

Since 2024, private investors have been able to participate in the energy transition through the KGAL klimaSUBSTANZ fund, which has already made its first investments in Germany and plans further portfolio diversification in 2025. For the third consecutive year, KGAL received the Scope Award for Best Asset Manager in New Energy Equity.

Real Estate Investments and Portfolio Management

KGAL selectively expanded its real estate holdings, acquiring properties for its KGAL Core 5 institutional residential fund and making strategic purchases in the office segment. In 2024, five real estate transactions totaling €225 million were completed across Europe, bringing KGAL’s total real estate portfolio to €7.8 billion.

Active asset management efforts helped increase the occupancy rate to 96%, ensuring stable cash flows for investors. The KGAL immoSUBSTANZ fund continued to outperform the market, achieving an increase in value of nearly 4% in 2024.

Aviation Sector Growth

KGAL benefited from rising global air travel demand and the need for fuel-efficient aircraft through its subsidiary GOAL Aircraft Leasing, a joint venture with Deutsche Lufthansa AG. The company’s aircraft portfolio now represents €2.8 billion in assets, reflecting strong market demand for modernized fleets.

Outlook for 2025 and Beyond

KGAL expects positive growth in 2025, despite continued economic challenges. The European energy transition remains a key investment driver, with energy independence and sustainable supply becoming critical priorities.

Sustainability regulations, particularly carbon footprint reduction in real estate, are set to become a dominant issue. KGAL’s expertise in ESG compliance positions it well to meet these evolving standards while leveraging digitalization to enhance investment strategies.

With a broad asset portfolio and a focus on sustainability, KGAL aims to continue offering high-value investment solutions across renewable energy, real estate, and aviation in the coming years.