- Carlyle Group acquired a minority stake in North Bridge ESG, which provides clean energy financing for real estate projects.
- Carlyle is committing up to $1B to help North Bridge provide C-PACE loans for sustainable property upgrades and new construction.
- C-PACE loans, repayable through property tax bills, are available in 40 states and D.C., and are gaining momentum as demand for sustainable real estate grows.
According to Bloomberg, Carlyle Group has acquired a minority stake in North Bridge ESG LLC, a firm specializing in private credit for clean energy projects in real estate.
Deal Details
As part of the deal, Carlyle has committed up to $1B to support North Bridge’s lending efforts. These loans focus on funding sustainable property upgrades, recapitalization of existing holdings, and new construction through commercial property-assessed clean energy (C-PACE) loans.
The transaction was facilitated by legal advisors, with Paul Hastings representing Carlyle and Latham & Watkins and Chapman and Cutler advising North Bridge.
Sustainable Demand
C-PACE loans allow landlords to finance energy-efficient projects and repay the loan via their property tax bills over time. With traditional banks retreating from CRE lending, C-PACE loans offer a valuable alternative for property owners seeking financing.
Currently, 40 U.S. states and Washington D.C. have adopted legislation enabling C-PACE financing. Laura Rapaport, CEO of North Bridge, pointed out that there is observable, increasing demand for sustainable real estate development, making this an ideal moment to expand C-PACE lending.
Smart, Strategic Move
For Carlyle, this investment aligns with its focus on asset classes that offer both stability and growth potential.
Akhil Bansal, Carlyle’s head of credit strategic solutions, emphasized the “massive” market potential for these loans, particularly in new construction and refinancing projects.
