NEW YORK, Sept. 16, 2024 /PRNewswire/ -- Global investment
firm Carlyle (NASDAQ: CG) today announced a strategic investment
into North Bridge ESG LLC ("North Bridge"), a leading provider of
real estate finance solutions, and a commitment to provide up to
$1 billion to facilitate the
origination of commercial property assessed clean energy (C-PACE)
loans by North Bridge. This partnership leverages Carlyle's
strategic growth, real estate, and asset-backed finance expertise
and enables North Bridge to address evolving market needs on a
larger scale.
North Bridge provides C-PACE financing to
institutional borrowers in major markets nationwide.
North Bridge provides C-PACE financing to institutional
borrowers in major markets nationwide. C-PACE is a fixed-rate form
of financing secured by local property assessments. As a private
credit solution with flexible terms, C-PACE is increasingly sought
after for its accretive benefits to commercial real estate capital
stacks. The financing can be used for new construction projects,
renovations, acquisitions, and retroactively for recapitalization
opportunities.
"Carlyle's $1B commitment to
C-PACE, the largest to date, enables North Bridge to lead the
transformation of the industry to better meet the needs of
institutional sponsors and their lenders." said Laura Rapaport, Founder and CEO of North
Bridge. "We are excited to partner with Carlyle, an
established leader in the private credit space, given their
exceptional track record of partnering with companies to drive
growth."
"We are pleased to bring together Carlyle's significant
expertise in asset backed finance and real estate credit to help
commercial real estate owners address their financing needs," said
Akhil Bansal, Head of Credit
Strategic Solutions at Carlyle. "North Bridge has a proven
capability to deliver C-PACE financing solutions of substantial
size to borrowers and sponsors, and we are excited to partner with
them to drive growth in an increasingly important financing
market."
"Our partnership with North Bridge, a leader in providing
capital market solutions to commercial real estate owners, allows
us to further meet the financing demands facing the industry," said
Rachel King, a principal focused on
opportunistic real estate credit at Carlyle. "Banks have pulled
back from commercial real estate lending due to concentration risk
in the sector, resulting in a dynamic that we believe should yield
attractive relative value opportunities for C-PACE lenders with
capital to deploy today."
This transaction was a joint effort between Carlyle's Credit
Strategic Solutions ("CSS") and Private Credit teams.
CSS is a group within the Global Credit business focused on
private fixed income and asset-backed investments. The highly
experienced team leverages the knowledge, sourcing, structuring,
and breadth of the entire Carlyle investment platform to deliver
tailored asset-focused financing solutions to businesses, specialty
finance companies, banks, asset managers, and other originators and
owners of diversified pools of assets. CSS has deployed nearly
$5 billion since 2021 and has roughly
$7 billion in assets under management
as of June 30th, 2024.
Within the private credit team, Carlyle's Real Estate Credit
Opportunities strategy focuses on directly originated,
asset-specific commercial real estate lending, programmatic
investing in real estate credit platforms, financing companies
targeting real estate, and making real estate-linked
investments.
Paul Hastings LLP served as legal advisor to Carlyle in
connection with the transaction. Latham & Watkins LLP and
Chapman and Cutler LLP served as legal advisors to North Bridge in
connection with the transaction.
About Carlyle
Carlyle (NASDAQ: CG) is a global
investment firm with deep industry expertise that deploys private
capital across its business and conducts its operations through
three business segments: Global Private Equity, Global Credit and
Global Investment Solutions. With $435
billion of assets under management as of June 30, 2024, Carlyle's purpose is to invest
wisely and create value on behalf of its investors, portfolio
companies and the communities in which we live and invest. Carlyle
employs more than 2,200 people in 29 offices across four
continents. Further information is available at www.carlyle.com.
Follow Carlyle on X @OneCarlyle and LinkedIn at The Carlyle
Group.
About North Bridge
North Bridge offers tailored C-PACE
financing for new and recently completed projects across all
commercial real estate asset classes nationwide. We have earned
industry recognition for completing some of the largest and most
innovative C-PACE projects to date by combining creative financial
acumen with decades of real estate development expertise. The North
Bridge team works closely with all stakeholders to design accretive
credit solutions for institutional real estate projects. Our focus
lies in optimizing capital stacks to achieve maximum efficiency,
reduce cost of capital, and enhance long-term asset value for our
clients. Further information is available
at www.northbridgeops.com. Follow North Bridge on
LinkedIn.
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SOURCE North Bridge