Athene Completes Acquisition of Petros PACE Finance, the Leading Provider of Commercial Property Assessed Clean Energy (C-PACE) Financing

Rhea-AI Summary

Athene Holding Ltd. has completed its acquisition of Petros PACE Finance, positioning the company to capitalize on growth in the C-PACE financing market. Led by co-founders Mansoor Ghori and Jim Stanislaus, Petros aims to enhance its energy efficiency financing solutions for commercial properties across the U.S. The acquisition aligns with Apollo's broader investment strategy, expected to drive rapid growth in C-PACE financing. The market for C-PACE financing is expanding, facilitating affordable financing options for diverse commercial property types, particularly amid increasing regulatory demands for sustainability.

Positive

• Acquisition aligns with market growth in clean energy financing.
• Access to Athene's capital and Apollo's investment expertise enhances growth opportunities.
• Broader financing solutions expected to improve energy efficiency in commercial properties.

Negative

• None.

AUSTIN, Texas, Jan. 18, 2022 /PRNewswire/ -- Petros PACE Finance, LLC (or the "Company") today announced the completion of its acquisition by Athene Holding Ltd., positioning the Company to take advantage of the significant tailwinds supporting the rapidly growing commercial PACE industry. Petros PACE Finance, the leading provider of Commercial Property Assessed Clean Energy ("C-PACE") financing to owners and developers of U.S. commercial properties, will continue to be led by its co-founders Mansoor Ghori, Chief Executive Officer, and Jim Stanislaus, Chief Financial Officer, who will retain a minority interest in the Company. The investment in Petros PACE Finance will be managed by the asset management team at Apollo (NYSE: APO), the global alternative asset manager with $481 billion in assets under management.

Petros PACE's acquisition-investment by Athene/Apollo accelerates clean energy financing for commercial real estate.

"We're thrilled the acquisition is now complete. We can now take advantage of the strategic support and capital from our partners at Apollo and Athene to substantially accelerate our growth trajectory," said Mansoor Ghori, CEO.

"Looking ahead, we're especially excited by the synergies with Apollo's leading investment platform to provide financing solutions across the full capital stack. Our ability to bring a broader set of solutions to market helps developers and owners make their buildings more energy efficient and resilient, and meet growing climate change mandates," said Ghori.

Petros CFO Jim Stanislaus added, "With our capital partner, Athene, we have the potential to access significant amounts of capital to support our growth. In addition, with Apollo's substantial experience and access to the capital markets, Petros will be able to structure and provide new products to our customers and continue to serve as a partner of choice for all things "green" financing."

Since 2016, Petros PACE has provided long-term, fixed-rate financing for energy efficiency, water efficiency, renewable energy and resiliency projects in 14 states. C-PACE financing is active in 27 states and the District of Columbia and is secured by a special property tax assessment that provides distinct advantages to property owners, including serving as a more affordable financing alternative to mezzanine debt and equity across virtually all commercial property types, such as office, hospitality, retail, multi-family, industrial, mixed-use real estate and more. In June 2021, 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.

Apollo and Athene expect that the Company will accelerate its rapid growth in C-PACE financing driven by new market expansion, sustainable construction and regulatory climate mandates. Petros PACE Finance is complementary to Apollo's larger portfolio of origination platforms diversified across commercial and consumer finance.

CIBC Capital Markets served as financial advisor to Athene, and Gibson, Dunn & Crutcher LLP and Sidley Austin LLP served as legal advisors to Athene. Barclays served as financial advisor to Petros, and Skadden, Arps, Slate, Meagher & Flom LLP and Winston & Strawn LLP served as legal advisors to Petros.

About Petros
Petros PACE Finance, LLC is the national leader in the C-PACE marketplace, dedicated solely to providing long-term C-PACE financing to commercial property owners seeking to lower energy costs, reduce their carbon footprint and increase property values and meet environmental, social and governance (ESG) goals. Its leadership team has decades of executive-level experience in private credit and structured finance, with direct long-term institutional investor relationships. With billions in committed capital, Petros is able to close transactions in eligible C-PACE markets nationwide. To learn more about Petros PACE Finance visit our website at www.petros-pace.com.

About Athene
Athene, a subsidiary of Apollo, is a leading retirement services company with total assets of $224.4 billion as of September 30, 2021 and operations in the United States, Bermuda, and Canada. Athene specializes in helping its customers achieve financial security and is a solutions provider to institutions. Founded in 2009, Athene is Driven to Do More for our policyholders, business partners, and the communities in which we work and live. For more information, please visit www.athene.com.

About Apollo
Apollo is a global, high-growth alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three business strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of September 30, 2021, Apollo had approximately $481 billion of assets under management. To learn more, please visit www.apollo.com.

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SOURCE Petros PACE Finance, LLC

FAQ

What is the significance of Athene's acquisition of Petros PACE Finance?

The acquisition allows Petros to leverage Athene's capital and Apollo's investment platform to accelerate its growth in the C-PACE financing market.

How will the acquisition impact Petros PACE Finance's operations?

Petros PACE Finance will enhance its financing solutions for commercial properties, focusing on energy efficiency and regulatory compliance.

What is C-PACE financing and why is it important?

C-PACE financing supports energy efficiency projects in commercial properties, offering long-term, fixed-rate financing secured by property tax assessments.

What market potential does Petros PACE Finance have post-acquisition?

With the backing of Athene and Apollo, Petros is expected to tap into significant growth opportunities in the expanding C-PACE market, benefiting from regulatory mandates for sustainability.