Nuveen Secures $785 Million for Its C-PACE Lending Fund: A Move Towards Sustainable Investments
In a significant development highlighting the growing intersection of finance and sustainability, Nuveen, one of the world's foremost asset managers with assets exceeding $1.3 trillion, has announced the successful acquisition of $785 million in commitments for its latest initiative, the C-PACE Lending Fund III. The announcement was made on July 30, 2025, underlining Nuveen’s commitment to creating sustainable investment opportunities while catering to the evolving needs of investors seeking long-term financial stability.
The Capital Improvement Program for Energy Efficiency (C-PACE) is a groundbreaking financing strategy that empowers property owners and developers by providing long-term capital at lower costs for initiatives aimed at enhancing energy efficiency, water conservation, and overall climate resilience. The state-level, public-private partnership enables commercial property improvements, thereby generating both environmental benefits and attractive returns for investors.
Joseph Pursley, head of insurance for the Americas at Nuveen, emphasized that sustainability and impact considerations are increasingly important for insurers, alongside their preference for longer-duration, investment-grade assets that balance risk and return. The C-PACE fund successfully meets these dual requirements, presenting an investment solution that not only promotes climate resilience but also adheres to rigorous financial standards, thereby appealing to insurers looking to expand their portfolios with sustainable assets.
Alexandra Cooley, Chief Investment Officer and co-founder of Nuveen Green Capital, noted the advantages of their vertically integrated platform. It offers an established and proprietary flow of C-PACE assets with compelling economic incentives and positive social impacts, creating a beneficial synergy for property owners and investors alike. The fund enhances Nuveen Green Capital’s lending capabilities, empowering investors to support properties that will yield both financial returns and environmental gains.
Recent surveys conducted by Nuveen reveal a striking trend in investment trends among global institutional investors — a significant 93% of insurers either currently consider or plan to incorporate environmental and social impacts into their investment strategies. This growing focus on responsible investing reflects a noteworthy shift in the market, where traditional investment metrics are increasingly being supplemented by ESG (Environmental, Social, and Governance) considerations.
Since its inception, Nuveen’s C-PACE strategies have amassed over $6 billion in assets under management, underscoring their position as leaders in the sustainable finance sector. Since 2017, Nuveen Green Capital has successfully securitized over $3 billion through various funds, establishing themselves as the first in the market to create securitizations from C-PACE assets. The company's efforts have yielded tangible environmental impacts; its financing efforts reportedly reduced CO2 emissions equivalent to preserving over 407,000 acres of forest and conserved over 461 million gallons of water during 2024 alone.
As the dialogue around sustainable finance continues to evolve, organizations like Nuveen are at the forefront, demonstrating how strategic investments can simultaneously bolster financial returns and foster environmental responsibility. The C-PACE Lending Fund III not only represents a substantial financial commitment but also embodies a forward-thinking approach to addressing pressing global challenges related to climate change and resource utilization, making it a landmark initiative in the realm of asset management.
To learn more about the innovative financing solutions Nuveen is providing, visit Nuveen's website.
Investing always carries risks, including the potential loss of principal, and no investment is guaranteed to yield positive outcomes. It is crucial for potential investors to consider these risks carefully when evaluating investment opportunities in private funds and innovative asset classes such as C-PACE.
The Capital Improvement Program for Energy Efficiency (C-PACE) is a groundbreaking financing strategy that empowers property owners and developers by providing long-term capital at lower costs for initiatives aimed at enhancing energy efficiency, water conservation, and overall climate resilience. The state-level, public-private partnership enables commercial property improvements, thereby generating both environmental benefits and attractive returns for investors.
Joseph Pursley, head of insurance for the Americas at Nuveen, emphasized that sustainability and impact considerations are increasingly important for insurers, alongside their preference for longer-duration, investment-grade assets that balance risk and return. The C-PACE fund successfully meets these dual requirements, presenting an investment solution that not only promotes climate resilience but also adheres to rigorous financial standards, thereby appealing to insurers looking to expand their portfolios with sustainable assets.
Alexandra Cooley, Chief Investment Officer and co-founder of Nuveen Green Capital, noted the advantages of their vertically integrated platform. It offers an established and proprietary flow of C-PACE assets with compelling economic incentives and positive social impacts, creating a beneficial synergy for property owners and investors alike. The fund enhances Nuveen Green Capital’s lending capabilities, empowering investors to support properties that will yield both financial returns and environmental gains.
Recent surveys conducted by Nuveen reveal a striking trend in investment trends among global institutional investors — a significant 93% of insurers either currently consider or plan to incorporate environmental and social impacts into their investment strategies. This growing focus on responsible investing reflects a noteworthy shift in the market, where traditional investment metrics are increasingly being supplemented by ESG (Environmental, Social, and Governance) considerations.
Since its inception, Nuveen’s C-PACE strategies have amassed over $6 billion in assets under management, underscoring their position as leaders in the sustainable finance sector. Since 2017, Nuveen Green Capital has successfully securitized over $3 billion through various funds, establishing themselves as the first in the market to create securitizations from C-PACE assets. The company's efforts have yielded tangible environmental impacts; its financing efforts reportedly reduced CO2 emissions equivalent to preserving over 407,000 acres of forest and conserved over 461 million gallons of water during 2024 alone.
As the dialogue around sustainable finance continues to evolve, organizations like Nuveen are at the forefront, demonstrating how strategic investments can simultaneously bolster financial returns and foster environmental responsibility. The C-PACE Lending Fund III not only represents a substantial financial commitment but also embodies a forward-thinking approach to addressing pressing global challenges related to climate change and resource utilization, making it a landmark initiative in the realm of asset management.
To learn more about the innovative financing solutions Nuveen is providing, visit Nuveen's website.
Investing always carries risks, including the potential loss of principal, and no investment is guaranteed to yield positive outcomes. It is crucial for potential investors to consider these risks carefully when evaluating investment opportunities in private funds and innovative asset classes such as C-PACE.
Topics Financial Services & Investing）
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