Funds managed by Blue Owl Capital, the New York-based alternative asset manager, has made a $2.5 billion investment in Point, a leading home equity investment (HEI) platform, to help the latter expand its business.
The collaboration has brought HEI-backed securitizations to market in the past, raising $390 million in November and $248 million in June, according to Point.
The latest commitment is one of the largest ever made in the home equity investment space, Point said. It signals a shift in the market, where institutional demand for home equity investment products is unprecedented.
Home equity investments let homeowners cash out part of the equity in their homes in exchange for a percentage of the property's future equity. Sometimes referred to as shared appreciation contracts, HEI financings let consumers tap into the value of their homes without incurring more debt.
Being on track to grow well over three [times] year-over-year are milestones that once felt aspirational.
The debt-neutral contract is attracting consumers while mortgage rates, around 6.2% on 30-year, fixed mortgages, are still elevated compared to 2009-2021 rates. Many borrowers are also locked into low-rate loans, with little ability to tap into their equity through traditional home equity loan or home equity line of credit products, the company said.
Those factors are contributing to
In 2025, the company has funded more than $2 billion in home equity investments to more than 20,000 homeowners nationwide, according to a company statement.
"Being on track to grow well over three [times] year-over-year are milestones that once felt aspirational," according to a statement from Lim. "They're now our reality, and this partnership with Blue Owl positions us to scale even faster while continuing to deliver exceptional outcomes for the families we serve."
