Petros PACE Finance: Looking Back, Looking Forward

Petros PACE Finance Omaha Capitol

Petros PACE Finance Omaha Capitol

As we head into the PACENation Summit here in Austin, I’d like to reflect on how far we’ve come since this time last year and what lies ahead for us as an organization and an industry.

From funding deals to securing a multi-billion capital commitment, the past year has been game-changing for Petros PACE Finance. We now have critical foundation in place to ensure we can continue executing efficiently and shaping the future of C-PACE every day during a time of rapid growth for the industry.

Last fall, we closed 2018’s largest publicly-announced C-PACE transaction for $24.9 million in Omaha, Nebraska, the fifth C-PACE funding in the state for a total of $31.2 million, all funded by Petros. The second largest transaction of 2018 was a $16.3 million project also funded by Petros in Columbus, Ohio that closed last week, marking our first time to close a deal in Ohio—a robust market we are excited to enter.

On top of our record-setting transactions, we announced in November that we had secured a multi-billion capital commitment from institutional investor partners for funding C-PACE transactions nationwide. The capital commitment further enables us to fund massive new construction and gut rehab projects nationally and, most importantly, provides property owners and developers the certainty of close they need on projects with unlimited funding requirements.

Earlier this year, we continued to chart a path toward greater innovation with the acquisition of Demeter Power Group, a solar PACE innovator bringing scalable financing of solar and distributed energy projects to the commercial and industrial sector. Petros Energy Solutions, a new affiliate, will focus on bringing tax-efficient energy finance solutions to Petros’ customers nationwide.

Additionally, Petros forged ahead, transacting in four new markets during the year including Florida, Nebraska, Maryland, and Ohio, solidifying its position as the leading C-PACE provider with the most significant market footprint of 11 states including the District of Columbia.

As we all know, education is typically one of the most significant obstacles faced by new project offerings. To help foster growth and speed adoption of C-PACE, the team was actively involved in educational opportunities across the country throughout the year to help our clients understand the ins and outs of C-PACE. Team members attended conferences and served as subject matter experts on webinars and panels for organizations such as the Urban Land Institute (ULI), CDFA, NAESCO, Better Buildings Energy Summit, and many others. Multiple team are also sharing their insights on panels at the summit this week.

On top of all these industry milestones, in October we also received a private rating on a pool of C-PACE assets originated and funded by us. This rating is subsequent to another private rating issued earlier this year for Petros on a single asset C-PACE transaction—the first single asset C-PACE transaction ever to receive a rating in the country.

Petros’ impact on the market is undeniable, and the future of the C-PACE market continues to grow brighter. Moving forward, we stand committed to helping commercial property owners and developers obtain the financing they need to undergo necessary energy upgrades and complete their capital stacks for developments with efficiency components.

As co-chair of this year’s PACENation Summit, I’d like to welcome everyone visiting to Austin and look forward to an exciting exchange of ideas. This year marks the first time the national event dedicated to convening members of our industry will be here in Austin. Petros PACE Finance is the Summit Event Sponsor and every team member here is playing a role. From panel participation to event support, I’m proud of our team’s commitment to working harder every day to build the PACE marketplace.

In closing, and most importantly, I want to thank all of you… our clients, team, and partners, for supporting Petros PACE Finance. We’ve had an exceptional year of growth and could not have done it without each of you. I hope to see you at the summit!

Mansoor Ghori
CEO, Petros PACE Finance