The Carlyle Group CG made a strategic investment in North Bridge ESG LLC (North Bridge), with a commitment to provide up to $1 billion to facilitate the origination of commercial property assessed clean energy (C-PACE) loans by North Bridge.

Carlyle is buying a minority stake in North Bridge ESG LLC, a finance firm that focuses on a type of private credit lending to landlords for clean energy projects.

Carlyle is teaming up with North Bridge ESG LLC to commit as much as $1 billion towards lending for commercial properties.

Under the deal, Carlyle, a Washington, D.C.-based investment firm with $435B of assets under management, would buy a minority stake in New York City-based North Bridge, Bloomberg reported. North Bridge focuses on commercial property assessed clean energy, or C-PACE , loans.

North Bridge provides C-PACE financing to institutional borrowers in major markets nationwide. C-PACE is a fixed-rate form of financing secured by local property assessments. As a private credit solution with flexible terms,