Athene Announces Acquisition of Petros PACE Finance
A Brief Summary
Apollo's investment solutions company Athene announced its acquisition of Commercial Property Assessed Clean Energy(C-PACE) financing provider Petros PACE Finance. The transaction comes as buildings become key emitters of greenhouse gas and one of the hardest to Decarbonize.
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Petros PACE Finance LLC, a supplier of commercial property assessed clean energy (C-PACE) financing to owners and developers of commercial properties, has been acquired by Athene Holding Ltd. (NYSE: ATH), a financial services business focused on retirement savings.
Petros has provided more than $700 million in long-term, fixed-rate financing for energy efficiency, water efficiency, renewable energy, and resiliency projects since 2016. The company's C-PACE financing is backed by a specific property tax assessment, making it a more cost-effective option to mezzanine finance and equity for a variety of commercial properties.
The firm's investment will be managed by a team from Apollo, Athene's asset management partner, and is expected to result in a quick acceleration of C-PACE financing.
"This transaction presents a compelling opportunity to partner with Petros and its best-in-class team at the forefront of the ESG movement in commercial real estate, while also advancing our long-standing strategy of investing in businesses that add direct origination sourcing capabilities to our alpha-generating investment portfolio," said Jim Belardi, Chairman and CEO of Athene. "Climate concerns, tenant demand, and regulatory obligations are driving developers to seek new ways to make properties more energy-efficient, and Petros PACE Finance is the industry leader in delivering flexible financial options to satisfy those needs," says the company.
Athene has hired CIBC Capital Markets as its financial advisor, and Gibson, Dunn & Crutcher LLP and Sidley Austin LLP as its legal counsel. Petros has hired Barclays as its financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP and Winston & Strawn LLP as its legal counsel.