Athene Holding Ltd. (NYSE: ATH) ("Athene"), an industry-leading
financial services company focused on retirement savings solutions,
today announced it has entered into a definitive agreement to
acquire Petros PACE Finance, LLC (“Petros PACE Finance” or the
“Company”), a leading provider of Commercial Property Assessed
Clean Energy (“C-PACE”) financing to owners and developers of
commercial properties throughout the United States.
Since 2016, Petros PACE Finance has originated over $700 million
in long-term, fixed-rate financing for energy efficiency, water
efficiency, renewable energy and resiliency projects. C-PACE
financing is active in 27 states and the District of Columbia and
is secured by a special property tax assessment that provides a
more affordable financing alternative to mezzanine debt and equity
across a variety of commercial properties, including office,
hospitality and retail. 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.
The investment in Petros PACE Finance will be managed by the
team at Apollo (NYSE: APO), Athene's strategic asset management
partner, and together 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. Following completion of the transaction, Petros
co-Founders Mansoor Ghori and Jim Stanislaus will continue to lead
the Company and retain a minority interest along with other members
of management.
“This transaction is a compelling opportunity to partner with
the Company and its best-in-class team at the center of the ESG
movement in commercial real estate, while building on our
longstanding strategy of investing in businesses that add direct
origination sourcing capabilities to our alpha-generating
investment portfolio,” said Jim Belardi, Chairman and CEO of
Athene. “Climate concerns, tenant demand and legislative mandates
are driving developers to look for new opportunities to make
properties more energy efficient, and Petros PACE Finance is the
industry leader providing flexible funding solutions to meet those
needs. The Company’s successful track record and range of
capabilities – from refinancings to originating new loans – are a
clear advantage in a massive and rapidly growing market, and we are
eager to support the platform. We look forward to working together
as a funding partner to provide environmentally focused financing
solutions to an even broader segment of the real estate
industry.”
Mansoor Ghori, Co-Founder and CEO, and Jim Stanislaus,
Co-Founder and CFO, of Petros PACE Finance, added, “Partnering with
Athene and Apollo opens up many exciting possibilities for our team
to rapidly scale our C-PACE business and accelerate growth of the
Company. The vast resources and expertise of our new partners will
provide crucial support and new opportunities to leverage our
best-in-class direct origination capabilities to go deeper into the
capital stack and provide more comprehensive solutions for our
clients, while shaping the future of the C-PACE industry. This will
be a significant advantage as we further expand into major
metropolitan areas like New York City, Chicago and New Jersey.”
“Under Mansoor and Jim’s leadership, Petros Pace Finance has
delivered strong risk-adjusted returns, driven by a world-class
origination team and secured by the robust credit ratings of the
underlying C-PACE assets,” said Apollo Co-President Jim Zelter.
“For Apollo and Athene, Petros PACE Finance is highly complementary
to our portfolio of diversified origination platforms and
positioned for significant growth as more property owners seek
financing for clean energy projects.”
The transaction is subject to customary closing conditions and
is expected to be completed in the first quarter of 2022.
CIBC Capital Markets is serving as financial advisor to Athene,
and Gibson, Dunn & Crutcher LLP and Sidley Austin LLP are
serving as legal advisors to Athene. Barclays is serving as
financial advisor to Petros, and Skadden, Arps, Slate, Meagher
& Flom LLP and Winston & Strawn LLP are serving as legal
advisors to Petros.
About Apollo
Apollo is a high-growth, global alternative asset manager. 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.
Through our investment activity across our fully integrated
platform, we serve the retirement income and financial return needs
of our clients, and we offer innovative capital solutions to
businesses. Our patient, creative, 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.
About Athene
Athene, through its subsidiaries, 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, shareholders, and the communities
in which we work and live. For more information, please
visit www.athene.com.
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.
Safe Harbor for Forward-Looking Statements
This press release contains, and certain oral statements made by
Athene's representatives from time to time may contain,
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Such statements are
subject to risks and uncertainties that could cause actual results,
events and developments to differ materially from those set forth
in, or implied by, such statements. These statements are based on
the beliefs and assumptions of Athene's management and the
management of Athene's subsidiaries. Generally, forward-looking
statements include actions, events, results, strategies and
expectations and are often identifiable by use of the words
“believes,” “expects,” “intends,” “anticipates,” “plans,” “seeks,”
“estimates,” “projects,” “may,” “will,” “could,” “might,” "should,"
or “continues” or similar expressions. Forward-looking statements
within this press release include, but are not limited to,
statements regarding future growth prospects and financial
performance. Factors that could cause actual results, events and
developments to differ include, without limitation: the accuracy of
Athene's assumptions and estimates; Athene's ability to maintain or
improve financial strength ratings; Athene's ability to manage its
business in a highly regulated industry; regulatory changes or
actions; the impact of Athene's reinsurers failing to meet their
assumed obligations; the impact of interest rate fluctuations;
changes in the federal income tax laws and regulations; the
accuracy of Athene's interpretation of the Tax Cuts and Jobs Act;
litigation (including class action litigation), enforcement
investigations or regulatory scrutiny; the performance of third
parties; the loss of key personnel; telecommunication, information
technology and other operational systems failures; the continued
availability of capital; new accounting rules or changes to
existing accounting rules; general economic conditions; Athene's
ability to protect its intellectual property; the ability to
maintain or obtain approval of the Delaware Department of
Insurance, the Iowa Insurance Division and other regulatory
authorities as required for Athene's operations; the delay or
failure to complete or realize the expected benefits from the
proposed merger with Apollo Global Management; and other factors
discussed from time to time in Athene's filings with the SEC,
including its annual report on Form 10-K for the year ended
December 31, 2020, its quarterly report on Form 10-Q for the
quarterly period ended September 30, 2021 and its other SEC
filings, which can be found at the SEC’s website www.sec.gov.
All forward-looking statements described herein are qualified by
these cautionary statements and there can be no assurance that the
actual results, events or developments referenced herein will occur
or be realized. Athene does not undertake any obligation to update
or revise forward-looking statements to reflect changed
assumptions, the occurrence of unanticipated events or changes to
future operating results.
Athene Contacts:
Media |
Investors |
Kelly Woerdehoff |
Alex Pelzar |
AVP, Corporate Communications |
Investor Relations Director |
(515) 342-5144 |
(646) 768-7316 |
kwoerdehoff@athene.com |
apelzar@athene.com |
Apollo Contacts:
Media |
Investors |
Joanna Rose |
Noah Gunn |
Global Head of Corporate Communications |
Global Head of Investor Relations |
(212) 822-0491 |
(212) 822-0540 |
Communications@apollo.com |
IR@apollo.com |
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