Clearwater PACE Secures $300 Million for Growth and Innovation in C-PACE Financing

Clearwater PACE Secures $300 Million for Expansion

Clearwater PACE, a subsidiary of AXCS Capital Inc., has recently announced the successful closure of a financing vehicle valued at up to $300 million, provided by Ares Alternative Credit funds. This pivotal move is set to enhance Clearwater’s capabilities in deploying capital for large-scale Commercial Property Assessed Clean Energy (C-PACE) projects across the United States, including over 40 states and Washington D.C.

The financing vehicle marks a significant juncture in Clearwater's growth and solidifies its stature as a leading player in the burgeoning C-PACE market. By focusing on long-duration, low-risk C-PACE loans, Clearwater aims to facilitate fixed-rate financing for large transactions, typically targeting amounts from $5 million upwards, with an average check size of approximately $40–50 million per project.

C-PACE, as a financing mechanism, allows property owners to fund energy efficiency upgrades through a tax assessment attached to their properties. This method of financing transforms energy-related upgrades into a long-term, secured investment for borrowers. It represents a viable avenue for property owners to enhance building value while promoting sustainability efforts in commercial real estate.

In an environment where commercial real estate capital markets are undergoing adjustments, sponsors are increasingly integrating C-PACE loans with traditional financing sources like first lien and mezzanine financing. This integration of C-PACE facilitates a seamless capital structure, lessening the financial burden on senior lenders while also appealing to borrowers seeking innovative financing solutions.

Jonathan Seabolt, CEO of Clearwater, expressed optimism about the growth of C-PACE financing, stating, "C-PACE has transitioned from a niche green financing option into a robust balance sheet solution for borrowers. This initial close is a testament to the burgeoning institutional demand for C-PACE loans and fortifies Clearwater’s position to tap into substantial market share in this expanding asset class, which surpassed $3 billion in originations in 2025. Our new vehicle offers the necessary scale and duration to consistently advocate large transactions."

Evan Kinne, CEO of AXCS Capital, echoed Seabolt’s sentiments, indicating that the C-PACE vehicle represents a new pillar in AXCS’s strategy to serve its clientele better and signifies a step towards becoming a premier institutional alternative asset manager. He highlighted the firm’s diverse origination capabilities, which empower them to deliver tailored capital solutions for real estate owners and operators nationwide.

Following this announcement, Clearwater’s executive committee, comprising seasoned professionals with extensive transactional backgrounds totaling over $30 billion, stands positioned to exploit the rising demand for C-PACE financing. Team members include Jonathan Seabolt (CEO), Michael Llodra (Head of Capital Markets), William
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