Clearwater PACE (Clearwater) a subsidiary of AXCS Capital Inc. (AXCS) announces the close of $300m for C-PACE financing vehicle, with capital provided by Ares Alternative Credit funds. The vehicle allows Clearwater to deploy balance sheet capital into large-scale C-PACE financings in hospitality, multifamily, mixed-use, and adaptive reuse projects.
The initial close is a significant milestone for Clearwater’s growth trajectory and reaffirms its position as a leading institutional platform in the rapidly growing C-PACE market.
The structure is expected to capitalise on the long-duration, low-risk characteristics of C-PACE loans and targets fixed-rate, long-tenor financings of $5m or greater, with a target check size of approximately $40 to $50m per transaction.
C-PACE enables property owners to finance energy-related upgrades through a tax assessment tied to the real estate itself, forming a long-duration, senior-secured instrument.
“C-PACE has evolved from a niche green financing product into a highly compelling balance sheet solution for borrowers. This initial close validates the institutional demand for C-PACE loans and further positions Clearwater to capture meaningful market share in an asset class that exceeded $3b of origination volume in 2025. This vehicle provides the scale and duration required to execute repeatable, large-balance transactions.”
Jonathan Seabolt, CEO, Clearwater
As commercial real estate capital markets continue to correct, sponsors are increasingly pairing C-PACE with traditional first lien, mezzanine, and preferred equity capital sources across a broad range of asset classes.
As a complementary instrument, the platform reduces the senior lender’s basis and enables more efficient capital structures. In most jurisdictions, C-PACE can be deployed for new construction, value-add renovations, and post-construction recapitalisations.
“The C-PACE vehicle represents a further broadening in AXCS’s ability to serve clients and a new pillar in its evolution as an institutional alternative asset manager.
“The C-PACE vehicle shows how AXCS’s diversified and differentiated origination capabilities enable capital formation across its platform, enabling it to deliver tailored capital solutions to real estate sponsors, owners, and operators nationwide. We are optimistic about C-PACE’s growth as an asset class and are excited to be at the forefront of the asset class’s evolution.”
Evan Kinne, CEO, AXCS Capital
Clearwater’s executive committee forms of Jonathan Seabolt, CEO, Michael Llodra, Head of Capital Markets, William ‘Bill’ Burns, Managing Director of Real Estate Credit, and Lisa Nordel, Managing Director of Transaction Management.
The team brings over $30bn of transaction experience across structured credit and commercial real estate, the combination of institutional capital, execution speed, and deep market expertise strategises the firm to serve this accelerating demand.
 platforms secures funds for its platform.){kind=link}