Coventry Structured Investments (CSI) recently joined forces with the Coalition forGreen Capital (CGC) to drive over US$1bn in public-private investment to finance CPACE and clean transportation projects. The green bank will provide a US$100m line of credit to Coventry, leveraging EPA-granted capital to support large-scale clean energy initiatives deployment. The facility is designed to be recycled multiple times and has the potential to generate up to US$1bn in total funding over time.
“The key right now is meeting CGC’s initial US$100m commitment. We are thrilled aboutour current pipeline, and aim to cycle this commitment amount three to five times (or more),” says Rasool Alizadeh, Coventry’s founder and managing principal.
Spanning five years, the committed capital facility will feature a tranche-based structure, with CGC holding the senior position and Coventry assuming the junior tranche. “Thisfacility will initially function as a loan agreement for Coventry, but we’re also positioningCGC as a long-term partner in future securitisations,” notes Alizadeh. “This collaborationis about more than short-term transactions. It's a mutually beneficial strategy for both parties over the long haul.”
Beyond direct funding, the partnership positions CGC as an ally in Coventry’s future securitisation plans. Coventry intends to aggregate assets through the facility while retaining equity and ownership on both sides.
The facility will support C-PACE projects in sectors such as hospitality and multi family housing, offering property owners long-term, low-cost, non-recourse financing forupgrades involving HVAC systems, lighting, water conservation measures and solar panels. “C-PACE assessments are uniquely suited to address present and future financing challenges in the commercial real estate market, providing a pathway for essential sustainability upgrades,” says Alizadeh.
With the partnership underway, Coventry has set ambitious targets for its C-PACE portfolio, aiming to double assets under management to between US$300m andUS$500m by the end of 2025. “Our first year, we closed about approximately US$55m in AUM. This year, we’re on track to more than doubling that growth. It’s a testament to the strategy we’ve built,” says Alizadeh.
As liquidity continues to flow into the sustainable energy financing space, Coventry andCGC are positioning themselves to drive scalable solutions. “Demand is growing, and liquidity is following,” says Alizadeh. “This is just the beginning.”
Marta Canini
Published by SCI,
Wednesday 4 December 2024.
https://www.structuredcreditinvestor.com/news/asset-backed-finance/83791/c-pace-partnership-inked
