Ares Management has committed up to $300 million to Clearwater PACE, a niche lender that finances commercial property upgrades through the C‑PACE model. The infusion will expand Clearwater’s capacity to fund energy‑efficiency, water‑conservation and renewable‑energy projects for building owners seeking low‑cost, long‑term financing in the current market.

Clearwater, a unit of AXCS Capital, will deploy the new capital across a portfolio of commercial real‑estate owners looking to upgrade HVAC systems, install solar arrays or retrofit lighting. The deal positions Ares as a key backer in the growing C‑PACE market, which has seen a surge in demand as ESG mandates tighten for investors.

The $300 million pledge will allow Clearwater to issue more C‑PACE loans, potentially increasing its total loan book by up to 20% over the next 12 months. Investors benefit from a stable, tax‑advantaged return profile, while property owners gain access to deferred‑payment financing that aligns project costs with energy savings and operational efficiency for tenants and owners.

Ares’ backing signals confidence in the commercial clean‑energy niche and could spur additional capital into C‑PACE schemes nationwide. As regulatory pressure mounts on older buildings, lenders that can deliver tailored, long‑term financing will attract more borrowers. The partnership underscores a broader trend toward green retrofits in the U.S. market for commercial investors and property owners.