Nov. 25, 2022/Ivey Business School/ -- In 2021, Jordan Peckham (HBA ‘11) founded PaceZero Capital Partners, a sustainability-focused private credit firm that makes debt investments in established high-growth companies. Jordan started his career working in institutional fixed-income before moving into private credit, where he recognized the market opportunity for a sustainability-aligned strategy.
PaceZero addresses a pressing problem within the sustainable finance industry; very little money reaches companies commercializing technology that addresses social and environmental issues.
In 2022 Jordan expanded the team, hiring Brendan Horan (MBA ‘20) and three interns, all from Ivey or Western.
An opportunity for sustainable finance
PaceZero sits at the intersection of private credit and sustainability, striking a balance between agile financial underwriting and enhanced scrutiny of sustainability factors. PaceZero has developed a proprietary sustainable investing framework that integrates the United Nations Sustainable Development Goals to provide quantifiable metrics that demonstrate the positive outcomes generated by PaceZero portfolio companies.
For Jordan, the transition to a net-zero economy “is not about altruism; it’s about investing in economically viable businesses that generate positive environmental & social outcomes.”
PaceZero is not Jordan’s first experience with starting a sustainability-aligned business. While a student at Ivey, Jordan co-founded Cafe Xaraga - a coffee company that assisted in the redevelopment of coffee cultivation in Haiti.
Growing The Business
PaceZero sees opportunity in the current market conditions. Jordan comments, “rising interest rates and decreasing private market valuations are leading many established growth-stage businesses to private credit. At the same time, banks and diversified lenders are prioritizing their existing portfolios, significantly slowing the pace of their new investments.” From Jordan’s perspective, “the current market conditions present a near-ideal environment for our investment strategy.”
Brendan Horan, a Senior Associate at PaceZero, is excited because “from a financial perspective, there is an opportunity for attractive investment returns.” From an impact perspective, “investing in businesses at this stage is a key part of progressing solutions that address social and environmental issues.”
PaceZero announced the launch of its second fund, Sustainable Private Credit Fund II, on October 31st, 2022, with a lead commitment from a Canadian institutional asset manager. With a clear sustainability-aligned mission and capital to invest in established high-growth companies, PaceZero is well-positioned to be a champion of sustainable investing in private credit.