The open-ended infrastructure fund KGAL klimaSUBSTANZ, designed for private investors, will be wound up in an orderly fashion. The responsible capital management company (KVG), in consultation with KGAL, which acts as the fund's investment advisor, has terminated the mandate with effect from 28 September 2026. From this date, the issuance of new units and the redemption of existing units will cease. The two renewable energy assets in the fund portfolio will continue to be managed during the winding-up process and sold at an appropriate time. Available liquidity will be progressively distributed to investors.
Background to the decision
The primary reason for the fund's dissolution lies in the lack of prospects for establishing an economically viable size for the fund in the long term through sufficient new subscriptions and for further diversifying the portfolio, as explained by Michael Kohl, Head of Packaged Products at KGAL. Previous redemption requests from investors were low and did not play a decisive role in this strategic decision. Since the launch of KGAL klimaSUBSTANZ in November 2023, the market environment for open-ended public infrastructure funds has changed significantly.
In particular, demand for sustainable investment products is declining. Concurrently, rising interest rates have made fixed-term deposits and bonds more attractive to investors again. In this market situation, it is considered more responsible to provide clarity early on rather than to continue the fund in anticipation of a possible recovery in sales. The fund's existing investments are performing as planned operationally.
Existing portfolio and investor options
KGAL klimaSUBSTANZ was launched in November 2023 as an open-ended infrastructure special fund for private investors. The current fund assets amount to approximately 12.5 million EUR. The portfolio comprises two operational renewable energy assets located in Schleswig-Holstein, which are developing as planned operationally.
- —The Bliestorf wind farm near Lübeck consists of two wind turbines with a total output of 9.6 megawatts. It has been in operation since June 2025. A minimum remuneration for the electricity generated is contractually secured for 20 years.
- —The Eiderstede solar park has an output of 14.2 megawatt-peak and has been in operation since October 2024. Electricity revenues are secured via a 20-year off-take agreement with a municipal utility at a fixed price.
KGAL itself has a significant capital investment in the fund, ensuring alignment of interests with investors. Michael Kohl emphasised that they intend to utilise suitable market conditions to achieve the best possible sales results for all investors. The timing and proceeds of the sales depend on future market developments, which is why the amount of returns to investors cannot yet be reliably quantified. In addition to participating in the orderly winding-up, investors are offered the option to exchange their units in KGAL klimaSUBSTANZ at net asset value for units in the open-ended real estate fund KGAL immoSUBSTANZ. Details of this exchange offer will be communicated separately to investors via sales partners.
