Carlyle and North Bridge Announce Strategic Partnership to Provide Up to $1 Billion in C-PACE Financing

Core Insights - Carlyle has announced a strategic investment of up to $1 billion in North Bridge ESG LLC to facilitate the origination of commercial property assessed clean energy (C-PACE) loans [1][3] - This partnership aims to leverage Carlyle's expertise in strategic growth, real estate, and asset-backed finance to meet evolving market needs [1][3] Company Overview - North Bridge is a leading provider of C-PACE financing solutions for institutional borrowers across major markets in the U.S. [2][8] - C-PACE financing is a fixed-rate solution secured by local property assessments, increasingly sought after for its benefits to commercial real estate capital stacks [2][3] Market Context - The investment by Carlyle is the largest commitment to C-PACE financing to date, enabling North Bridge to lead industry transformation [3] - The partnership is expected to address the financing demands in commercial real estate, especially as banks have reduced lending due to concentration risk [3] Financial Performance - Carlyle's Credit Strategic Solutions (CSS) has deployed nearly $5 billion since 2021 and manages approximately $7 billion in assets as of June 30, 2024 [4] - Carlyle manages a total of $435 billion in assets as of June 30, 2024, across its three business segments: Global Private Equity, Global Credit, and Global Investment Solutions [7] Strategic Focus - Carlyle's Real Estate Credit Opportunities strategy focuses on asset-specific commercial real estate lending and programmatic investing in real estate credit platforms [5] - North Bridge aims to optimize capital stacks to enhance long-term asset value for clients through tailored C-PACE financing solutions [8]