Aquarian Holdings Makes Strategic Move with PACE Equity
Aquarian Holdings has announced a major investment in PACE Equity, securing a majority stake in the firm. PACE Equity stands as the largest independent provider of funding for commercial property-assessed clean energy (C-PACE) projects. Through this partnership, Aquarian aims to leverage this investment to significantly enhance its financing capabilities and expand its market reach.
Understanding C-PACE Projects
Commercial Property Assessed Clean Energy projects provide a unique funding solution for energy-efficient improvements in commercial buildings. These initiatives typically focus on aspects that promise measurable savings in water, energy, or renewable resource consumption. As the demand for sustainable solutions grows, the significance of C-PACE projects cannot be overstated.
The Benefits of Joining Forces
By acquiring a majority stake in PACE Equity, Aquarian Holdings will channel up to $1 billion into financing, allowing PACE Equity to increase its project capacity. This investment will not only help in addressing capital needs but will also enable the company to broaden its influence in a competitive marketplace.
Leaders in Their Industry
Rudy Sahay, the Founder and Managing Partner of Aquarian, expressed enthusiasm regarding this collaboration. “At Aquarian, we seek investments that promise longevity. The stability of C-PACE projects presents an attractive opportunity. We are delighted to form this partnership with PACE Equity,” Sahay highlighted.
PACE Equity's Growth Trajectory
Boasting a history of robust growth, PACE Equity has aligned itself with Aquarian to expedite its market expansion. Beau Engman, Founder and President of the company, conveyed excitement about collaborating with a partner like Aquarian, remarking on the potential to unlock new opportunities in clean energy financing.
Meeting Demand Amid Financial Shifts
As traditional banks lean away from lending in the commercial real estate sector, the demand for sustainable energy projects rises. Aquarian's strategic investment aims precisely to cater to this growing need. C-PACE projects not only embody the long-term stability that Aquarian values, but they also promise attractive yields, making this investment particularly compelling.
Structured for Success
The transaction was orchestrated by Aquarian's Strategic Opportunities team, who focus on identifying platforms poised for substantial growth. Their expertise spans various sectors, allowing them to develop efficiently structured financing opportunities often overlooked by the broader market.
Legal Expertise on Both Sides
This significant transaction was supported by top-tier legal counsel. DLA Piper LLP acted as legal advisor for Aquarian, while PACE Equity was guided by Gibson, Dunn & Crutcher LLP. Financial advisory services for PACE Equity were provided by Guggenheim Securities, LLC. This collaborative effort reflects the professionalism and strategic planning involved in this deal.
About PACE Equity
PACE Equity has been innovatively funding Commercial Property Assessed Clean Energy projects for over ten years. The firm has successfully closed C-PACE projects throughout the U.S., contributing to the energy-efficient development worth over $2.7 billion. Notably, these efforts have resulted in the elimination of over 1.2 million metric tons of carbon emissions, underscoring the positive environmental impact of their initiatives.
About Aquarian Holdings
Aquarian Holdings is a diversified global holding company with a strategic portfolio focused on insurance and asset management solutions. Led by founder Rudy Sahay, the firm has amassed approximately $19.5 billion in assets under management. Aquarian invests across the capital structure and designs tailored financing solutions that foster the growth of high-quality companies. Their comprehensive approach enables them to support insurance policyholders through appealing investment opportunities.
Frequently Asked Questions
What type of projects does PACE Equity finance?
PACE Equity focuses on funding Commercial Property Assessed Clean Energy projects, aiming for energy-efficient improvements in commercial buildings.
What is the significance of Aquarian's investment?
Aquarian's investment will provide PACE Equity with up to $1 billion in financing, allowing for expanded project capacity and market reach.
How does C-PACE financing work?
C-PACE financing allows property owners to secure funds for energy-efficient upgrades, which are repaid through property taxes over time.
Who advised Aquarian and PACE Equity in this transaction?
DLA Piper LLP and Gibson, Dunn & Crutcher LLP provided legal counsel, while Guggenheim Securities, LLC acted as the financial advisor for PACE Equity.
What is Aquarian's expertise in asset management?
Aquarian specializes in developing tailored financing solutions that foster strategic growth for companies within their portfolio.
