Ares commits up to $300 million to new C‑PACE financing vehicle with Clearwater PACE, enabling deployment of balance‑sheet capital into large commercial real‑estate projects across hospitality, multifamily, mixed‑use and adaptive‑reuse assets. Investors see C‑PACE as a hedge against rising construction costs and tightening ESG financing standards.

The vehicle, funded by Ares Alternative Credit funds, will target transactions of $5 million or more, with typical deal sizes of $40‑$50 million, and can finance borrowers in more than 40 states. C‑PACE loans attach to tax‑linked assessments, creating senior‑secured, long‑duration debt that offers investors stable returns while supporting energy‑efficiency upgrades. Because assessments ride on property tax bills, repayments are less sensitive to borrower cash flow volatility.

Clearwater’s CEO Jonathan Seabolt says the close validates institutional appetite and positions the firm to capture a larger slice of an asset class that generated over $3 billion in originations in 2025. The deal also expands AXCS Capital’s platform, making C‑PACE a core pillar of its structured‑finance strategy for sponsors and institutions. The structure gives lenders senior claim priority, often outperforming mezzanine layers in default scenarios.