Athene to buy commercial property financier
Bermudian-based Athene Holding Ltd, the financial services company focused on retirement savings solutions, has entered into a definitive agreement to acquire Petros PACE Finance, LLC.
Petros PACE Finance is a provider of commercial property assessed clean energy (“C-PACE”) financing to owners and developers of commercial properties throughout the United States.
Since 2016, Petros PACE Finance has originated more than $700 million in long-term, fixed-rate financing for energy efficiency, water efficiency, renewable energy and resiliency projects.
C-PACE financing is active in 27 states and the District of Columbia and is secured by a special property tax assessment that provides a more affordable financing alternative to mezzanine debt and equity across a variety of commercial properties, including office, hospitality and retail.
In June, Petros closed the largest-ever single C-PACE transaction and the first in New York City of $89 million, opening what is estimated to be the largest C-PACE market in the country and helping institutional sponsors fund commercial properties’ carbon reduction plans.
The investment in Petros PACE Finance will be managed by the team at Apollo, Athene's strategic asset management partner, and together Apollo and Athene said they expected that the company would accelerate its rapid growth in C-PACE financing driven by new market expansion, sustainable construction and regulatory climate mandates.
Following completion of the transaction, Petros co-founders Mansoor Ghori and Jim Stanislaus will continue to lead the company and retain a minority interest along with other members of management.
The transaction is subject to customary closing conditions and is expected to be completed in the first quarter of 2022.