Nuveen inks $1bn for climate-focused lending fund
Nuveen has raised over $1bn (£733m) for the fourth vintage of its climate-focused commercial property lending fund.
Nuveen Green Capital (NGC), a provider of sustainable commercial real estate financing solutions and owned by the $1.4tn asset manager Nuveen, has announced the first close of the Nuveen CPACE Lending Fund IV.
The $1bn first close brings total commitments to the fund series to $3bn since its inception in 2023, with NGC now having $6bn in assets under management.
C-PACE stands for commercial property assessed clean energy and is a public-private financing programme administered at state level. It provides building owners and developers with private capital for upgrades that make commercial buildings more energy-efficient, water-efficient and climate-resilient, according to the manager.
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“Investors have committed to this strategy across four vintages because the fundamentals remain steady throughout variable market cycles,” said Alexandra Cooley, chief executive and chief investment officer of NGC.
The C-PACE fund series now covers 39 US states plus the District of Columbia, according to Nuveen.
Among the commitments to Nuveen’s C-PACE fund series are those from North American insurers, the manager reported.
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“The continued growth in commitments from across four funds tells us that insurers aren’t just testing this asset class – they’re building meaningful, repeatable allocations to it,” said Joseph Pursley, Nuveen head of insurance, Americas.
“The demand we’re seeing for Fund IV – including new insurance limited partners – reinforces that this is becoming a durable, core allocation for insurance portfolios rather than a one-off commitment.”
