Global investment manager Nuveen and its sustainable commercial real estate financing solutions business Nuveen Green Capital (NGC), announced that it has raised over $1 billion in capital commitments at the first close of Nuveen CPACE Lending Fund IV, providing investors with access to exposure to the C-PACE asset class, which funds capital improvements that make commercial buildings more energy efficient, water efficient and climate resilient.

C-PACE (Commercial Property Assessed Clean Energy) is a public-private financing program led at the state level, providing building owners and developers with access to capital to fund commercial property improvements towards greater energy efficiency, water conservation and climate resiliency, with repayments made through an assessment on their property tax bill, providing a more affordable financing alternative to mezzanine debt and equity.

The fund marks the fourth vintage of Nuveen’s C-PACE Lending Funds following the firm’s 2021 acquisition of C-PACE financing company Greenworks, later rebranded as Nuveen Green Capital, aimed at establishing a foothold in the clean energy and energy efficiency lending market. Since launching the initial fund in 2023, total commitments to the Fund Series have reached $3 billion.

Alexandra Cooley, CEO and CIO of Nuveen Green Capital, said:

“Investors have committed to this strategy across four vintages because the fundamentals remain steady throughout variable market cycles. NGC’s vertically integrated platform continues to deliver a scaled, proprietary flow of C-PACE assets originated with established sponsors, combining compelling economics with measurable impact.”

Nuveen said that investor demand for the fund was led by insurers, with Joseph Pursley, Nuveen Head of Insurance, Americas, noting that “life insurers in particular continue to prioritize longer duration, investment grade, asset-backed securities with attractive risk-adjusted returns.”

Pursley added:

“The demand we’re seeing for Fund IV – including new insurance LPs – reinforces that this is becoming a durable, core allocation for insurance portfolios rather than a one-off commitment.”