Cross River Bank, a technology infrastructure provider, has provided a $100 million revolving credit facility to an investment vehicle managed by MidOcean Partners, LP, designed to support the acquisition of home equity investment contracts (HEIs) originated by Point Digital Finance, Inc.
The credit facility, structured by Cross River’s Principal Finance Group (PFG), is secured by the HEIs and exemplifies Cross River’s strategy of diversifying its asset class coverage and its capability to provide credit facilities across a growing range of markets.
Rahul Jha, Head of Principal Finance at Cross River, stated, “Home equity investments represent a natural extension of our credit facility capabilities. This facility reflects our commitment to partnering with leading asset managers like MidOcean and best-in-class fintech platforms like Point, whose innovative approach to home equity investments is unlocking new opportunities for homeowners and investors alike.”MidOcean Partners, a New York-based alternative asset manager specializing in middle-market private equity, alternative credit, and structured equity, recently entered into a forward flow purchase agreement with Point to acquire up to $600 million of Point-originated HEIs. Teddy Tawil, Co-Head of Opportunistic Credit at MidOcean Partners, commented on the collaboration, saying, “We are excited to partner with Cross River on this transaction as we continue to scale our presence in the HEI market. Cross River’s financing structure highlights their ability to deliver innovative, scalable solutions in the asset-backed credit market.”Point Digital Finance, Inc. (Point), headquartered in Palo Alto, CA, is a home equity platform that enables homeowners to access their equity without taking on new monthly payments. The company has worked with over 20,000 homeowners, facilitating more than $2 billion in unlocked home equity. Jordan Fox, Head of Capital Markets at Point, noted, “Closing this facility with Cross River and MidOcean underscores the rapid institutionalization of home equity investments and the expanding capital base supporting the asset class. We’re excited about the future of HEIs and value our strong partnership with Cross River and MidOcean.”Through this transaction, Cross River continues its role as a strategic capital provider, delivering flexible financing solutions across an expanding array of asset classes and contributing to innovation within the financial services industry. Point’s HEI product provides an alternative for homeowners to eliminate debt, manage financial hardship, or diversify wealth, while also offering investors access to owner-occupied residential real estate as an asset class.
