Successfully bucking the trend again – 2011 another good year for KGAL

Grünwald, Germany, 13 December 2011 – KGAL GmbH & Co. KG, a real capital asset manager from Grünwald near Munich, can already be pleased about a successful year even before the 2011 business year has come to a close. Despite the weak sales market for limited partnership funds for the third consecutive year, Carsten Eckert, CEO of KGAL, sums up: “For the months up to and including November, we were able to raise approximately EUR 400 million of new equity capital from our investors. A further EUR 200 million are also in the offing – allowing us to close out a bumper year respectively to make a good start to 2012.”

As in previous years, by far the largest share of the company’s success lies in the enthusiasm among institutional investors for offers in the renewable energies (photovoltaic and wind power) and domestic real estate (residen- tial and office) asset classes. In contrast, the retail funds business was supported by the aircraft and international real estate asset classes.

New strategy for satisfied clients and stable yields
“Thanks to the trust placed in us by our institutional investors, we consider our position at the very top of the market, which we have occupied for the last five years, to be confirmed. We are particularly grateful for this in view of the difficult conditions currently prevailing in the capital markets,” em- phasised Eckert. “Our strategy of concentrating on quality leadership and sustainability, which we have pursued in all areas of our daily work since 2007, is bearing ever more results. This is evident not just in client satisfac- tion levels, but also in KGAL’s balance sheet and earnings position.”

With this strategy, KGAL has been able to increase the volume and scope of fixed ongoing remuneration agreed upon. This has led, in combination with lower costs and balance sheet volumes that have already taken effect, to a financial services company emerging that enjoys steady yields and resilience to market fluctuations. Although KGAL was of course also affected by a number of market crises and risks that had to be overcome in specific projects, it has been able to enjoy sustained profitability over the past years.

Specific growth targeted – in investors and portfolio
In the future, KGAL plans to expand further its asset management platform for institutional clients – including investors from neighbouring countries – and to increase its portfolio. As in previous years, expectations are that KGAL will invest around EUR 1 billion annually across all asset classes for its investors.

With an investment volume of over EUR 25 billion and a very good track record in the asset categories of real estate, aircraft and infrastructure, the business model is set on very solid foundations from which a focussed expansion drive can be powered.

KGAL GmbH & Co. KG, located in Grünwald near Munich (Germany), has been opening up intelligent solutions for investors in the area of real capital investments for more than 40 years. As at 31.12.2010, the KGAL Group managed an investment volume of EUR 25.2 billion in the investment categories real estate, aircraft, infrastructure, ships and private equity. KGAL currently manages capital for 111,700 investors (incl. multiple subscriptions) with equity in- vestments in a total of 159 active limited partnership funds. These include retail funds, funds for institutional investors and individual investments for wealthy clients. The investors have entrusted EUR 6.5 billion to KGAL in equity capital for these funds.
KGAL is an investment company owned by Commerzbank, BayernLB, HASPA Finanzholding and Sal. Oppenheim with German locations in Grünwald (headquarters), Düsseldorf and Frankfurt. Subsidiaries exist in Italy, Canada and Austria. The KGAL Group currently employs about 380 personnel.
The leading rating agencies Feri EuroRating Services AG and Scope Analysis GmbH both rate the management quality at KGAL as AA or “very high”.