Carlyle Acquires Minority Stake in North Bridge ESG for Green Energy Landlord Lending

Carlyle has acquired a minority stake in North Bridge ESG LLC, a finance firm specializing in private credit lending for clean energy projects aimed at landlords. This investment comes with Carlyle’s commitment of up to $1 billion to assist North Bridge in providing loans.

Focus on C-PACE Loans for Real Estate

North Bridge is known for arranging Commercial Property Assessed Clean Energy (C-PACE) loans, which allow real estate owners to fund property improvements, refinance existing assets, or support new construction. These loans are repaid over time through additions to property tax bills.

Growing Demand for Sustainable Real Estate Financing

According to North Bridge’s CEO, Laura Rapaport, the demand for C-PACE loans is rising as more states adopt relevant legislation. With banks pulling back from commercial real estate lending, nearly 40 states and Washington DC now have laws enabling C-PACE financing. This shift, combined with the growing need for sustainable development, creates a favorable market environment for these loans.

Carlyle’s Strategic Move

Akhil Bansal, head of credit strategic solutions at Carlyle, highlighted the relatively low risk and significant growth potential of this asset class. Carlyle's involvement offers a chance to deploy investor funds into a promising market, with real estate sectors like new construction and refinancing providing ample opportunities.

Legal Advisers for the Deal

Carlyle was advised by the law firm Paul Hastings, while North Bridge received counsel from Latham & Watkins and Chapman and Cutler.