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C-PACE: making an impact on insurance allocations
Commercial Property Assessed Clean Energy (C-PACE) has become increasingly popular with U.S. insurers due to the impact opportunities it can offer, as well as access to clean energy investments and the potential for attractive and stable risk-adjusted returns.
This latest whitepaper further examines C-PACE as a relatively new asset class and explores why its qualities are particularly appealing to U.S. institutional clients, and insurance companies specifically.
Other key questions discussed include:
- How does C-PACE differ from other products?
- What are private asset backed securities (ABS)?
- How is C-PACE different to other ABS?
- What makes C-PACE so interesting to insurance companies?
- The future of C-PACE as a viable investment for insurers
Historically, the fixed rate coupons on our C-PACE assets have delivered an outpaced yield when compared to alternative investments and benchmark yields with similar capital-adjusted risk/return characteristics.”
Important information on risk
Past performance is no guarantee of future results. All investments carry a certain degree of risk, including the possible loss of principal, and there is no assurance that an investment will provide positive performance over any period of time. Certain products and services may not be available to all entities or persons. There is no guarantee that investment objectives will be achieved.
C-PACE assets are subject to various risks, including but not limited to: risks of insufficient cash flow of the subject property due to impaired operations or value; risks of a decline in the real estate market or financial conditions of a major tenant; risks of delinquencies and defaults; failure of the subject properties to complete agreed upon construction, repairs or improvements or achieve projected energy savings; limited operating history of certain subject properties; risk of assessments underlying certain C-PACE assets failing to comply with applicable state or local laws; risks of disputes with subject property owners and mortgage lenders; environmental contamination risks affecting the subject property; lack of industry-wide prepayment information available for commercial C-PACE assessments; and changes in laws and policies impacting C-PACE programs.
Responsible investing incorporates Environmental Social Governance (ESG) factors that may affect exposure to issuers, sectors, industries, limiting the type and number of investment opportunities available, which could result in excluding investments that perform well.
All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. Please note, it is not possible to invest directly in an index.
