Nuveen Secures Significant Capital for C-PACE Lending Fund
Nuveen Secures Significant Capital for C-PACE Lending Fund
Nuveen, a prominent global asset manager with a substantial portfolio, recently announced a significant milestone in its investment strategy. The firm has successfully raised $785 million in new capital commitments specifically for its Nuveen C-PACE Lending Fund III. This funding marks a crucial step for the company as it continues to enhance its offerings in sustainable commercial real estate financing.
Expanding Access to Impact Investing
This initiative aims to provide insurers with a more accessible pathway to investment-grade fixed-income opportunities. Nuveen's C-PACE (Commercial Property Assessed Clean Energy) lending strategy is designed to yield steady, long-term returns while making a discernible positive impact on commercial properties.
About C-PACE Lending Strategy
The C-PACE program is a unique financing mechanism that combines public and private resources. It allows building owners and developers to secure low-cost, long-term capital aimed at enhancing energy efficiency, conserving water, and boosting overall climate resilience in their projects.
Commitment to Sustainable Investments
Joseph Pursley, Nuveen's Head of Insurance for the Americas, emphasized the importance of sustainability in investment decisions. He noted, "Insurers are increasingly prioritizing longer duration investment-grade asset-backed securities that offer attractive risk-adjusted returns. The C-PACE strategies proposed by Nuveen are ideal for achieving both climate resilience and capital efficiency, giving insurers the scale they need in their portfolios."
Enhancing Financial Performance
Alexandra Cooley, the Chief Investment Officer and Co-founder of Nuveen Green Capital, mentioned, "Our vertically integrated platform fosters a strong and proprietary flow of C-PACE assets while collaborating with established sponsors. This not only promotes compelling economics but also provides a positive social impact that benefits property owners and the broader community." She highlighted how this fund strengthens NGC's lending capabilities and its ability to offer competitive financing that enhances overall building performance.
Insurer Engagement in ESG Investments
According to a recent survey of institutional investors, a significant majority of insurers, 93%, prioritize environmental and social impact in their investment choices. Nuveen currently manages approximately $325 billion in assets for over 125 global insurance clients, underscoring its commitment to responsible investing.
Sustained Growth and Impact
As a leading player in the C-PACE space, Nuveen Green Capital has made substantial strides in structuring and packaging C-PACE assets since its inception. Since 2017, the firm has successfully issued more than $3 billion through a combination of securitizations and private funds, thus establishing a pioneering lead in the market.
Positive Environmental Impact
An impact report from Nuveen Green Capital noted that its financing activities in 2024 resulted in significant environmental benefits. They reported reductions in CO2 emissions that equate to the annual absorption capabilities of over 407,000 acres of forest, alongside savings of more than 461 million gallons of water and over 585 megawatt-hours of energy. Additionally, these initiatives supported the construction of more than 2,100 housing units, highlighting the social impact of their investments.
Frequently Asked Questions
What is the total amount raised for the Nuveen C-PACE Lending Fund III?
Nuveen has raised $785 million in new capital commitments for the C-PACE Lending Fund III.
What are the main benefits of C-PACE financing?
C-PACE financing allows property owners to obtain low-cost, long-term capital to improve energy efficiency and support sustainable building practices.
How does Nuveen support environmental and social impact?
Nuveen integrates environmental and social governance (ESG) factors into its investment decisions, contributing to sustainable development and climate resilience.
What has been the impact of Nuveen's financing activities?
Nuveen's C-PACE financing has led to significant reductions in CO2 emissions, substantial water savings, and the creation of over 2,100 housing units.
Who can benefit from the C-PACE program?
Building owners and developers looking to enhance their properties' energy efficiency and sustainability can benefit from C-PACE financing options.
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