Carlyle and North Bridge Announce Strategic Partnership to Provide Up to $1 Billion in C-PACE Financing
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NEW YORK, Sept. 16, 2024 /PRNewswire/ -- Global investment firm Carlyle (NASDAQ: CG) today announced a strategic investment into North Bridge ESG LLC ("North Bridge"), a leading provider of real estate finance solutions, and a commitment to provide up to $1 billion to facilitate the origination of commercial property assessed clean energy (C-PACE) loans by North Bridge. This partnership leverages Carlyle's strategic growth, real estate, and asset-backed finance expertise and enables North Bridge to address evolving market needs on a larger scale.
North Bridge provides C-PACE financing to institutional borrowers in major markets nationwide. C-PACE is a fixed-rate form of financing secured by local property assessments. As a private credit solution with flexible terms, C-PACE is increasingly sought after for its accretive benefits to commercial real estate capital stacks. The financing can be used for new construction projects, renovations, acquisitions, and retroactively for recapitalization opportunities.
"Carlyle's $1B commitment to C-PACE, the largest to date, enables North Bridge to lead the transformation of the industry to better meet the needs of institutional sponsors and their lenders." said Laura Rapaport, Founder and CEO of North Bridge. "We are excited to partner with Carlyle, an established leader in the private credit space, given their exceptional track record of partnering with companies to drive growth."
"We are pleased to bring together Carlyle's significant expertise in asset backed finance and real estate credit to help commercial real estate owners address their financing needs," said Akhil Bansal, Head of Credit Strategic Solutions at Carlyle. "North Bridge has a proven capability to deliver C-PACE financing solutions of substantial size to borrowers and sponsors, and we are excited to partner with them to drive growth in an increasingly important financing market."
"Our partnership with North Bridge, a leader in providing capital market solutions to commercial real estate owners, allows us to further meet the financing demands facing the industry," said Rachel King, a principal focused on opportunistic real estate credit at Carlyle. "Banks have pulled back from commercial real estate lending due to concentration risk in the sector, resulting in a dynamic that we believe should yield attractive relative value opportunities for C-PACE lenders with capital to deploy today."
This transaction was a joint effort between Carlyle's Credit Strategic Solutions ("CSS") and Private Credit teams.