Expansion in sustainable real estate financing as Nuveen Secures $785 Million for Third C-PACE Lending Fund
In the realm of sustainable investment, Nuveen Green Capital's C-PACE Lending Fund III has made a substantial impact. According to the company's 2024 impact report, the fund's investments have delivered environmental benefits equivalent to preserving over 407,000 acres of forest, saved more than 461 million gallons of water, and helped create over 2,100 housing units [1].
The fund, which utilises the Commercial Property Assessed Clean Energy (C-PACE) financing model, is a state-led public-private partnership that provides commercial building owners with long-term, low-cost capital to fund sustainability upgrades. These upgrades significantly enhance energy and water efficiency, build climate resilience, and offer affordable financing alternatives to mezzanine debt and equity [1][3].
The fund has raised $785 million in commitments, bringing Nuveen's total C-PACE strategy assets under management to over $6 billion. This scale supports stable, investment-grade fixed income returns for insurers while generating measurable positive environmental and social impacts aligned with ESG goals [1][3][4].
The key environmental benefits include large-scale emissions reduction, water conservation, and energy savings. Socially, the benefits stem from enabling the creation of thousands of housing units that support community development and resilience [1].
Interestingly, 93% of Nuveen's insurance clients consider or plan to consider environmental and social impact in their investment decisions, reflecting a growing trend towards sustainable investing [2].
Nuveen Green Capital, a division of Nuveen, leads the market in C-PACE origination and innovation. The company was the first to securitize commercial PACE assets and launch a private fund series [1]. As of the end of 2024, NGC had issued over $3 billion through securitizations and private funds [1].
In conclusion, Nuveen Green Capital's C-PACE Lending Fund III is a testament to the potential of sustainable investing in driving significant environmental and social benefits while delivering stable returns for investors.
References: [1] Nuveen. (2024). Nuveen Green Capital 2024 Impact Report. Retrieved from https://www.nuveen.com/content/dam/nuveen/documents/Nuveen-Green-Capital-2024-Impact-Report.pdf [2] Nuveen. (2024). Nuveen's 2024 Sustainability Report. Retrieved from https://www.nuveen.com/content/dam/nuveen/documents/Nuveen-2024-Sustainability-Report.pdf [3] Nuveen Green Capital. (2024). C-PACE Lending Fund III. Retrieved from https://www.nuveen.com/institutional/products/c-pace-lending-fund-iii [4] PACE Now. (n.d.). What is C-PACE? Retrieved from https://www.pacenow.org/what-is-pace/
- The C-PACE Lending Fund III, managed by Nuveen Green Capital, has demonstrated a substantial social impact by contributing to the creation of over 2,100 housing units, supporting community development and resilience.
- By investing in clean energy initiatives through the C-PACE Lending Fund III, Nuveen Green Capital has saved more than 461 million gallons of water and reduced emissions equivalent to preserving over 407,000 acres of forest.
- In the realm of sustainable living, mezzanine debt and equity alternatives are being superseded by affordable financing options like those provided by Nuveen's C-PACE Lending Fund III, which significantly enhances energy and water efficiency in commercial buildings.
- As the leader in C-PACE origination and innovation, Nuveen Green Capital's strategies, such as the C-PACE Lending Fund III, are attracting growing interest from finance institutions and individuals seeking both stable returns and positive environmental and social impact in their home-and-garden, real-estate, and lifestyle investments.
