Cross River Bank, a technology infrastructure provider that offers embedded financial solutions, provided a $100 million revolving credit facility to an investment vehicle managed by MidOcean Partners. The facility, structured by Cross River’s principal finance group (PFG), is secured by home equity investment contracts (HEIs) and originated by Point Digital Finance. The structure provides MidOcean with flexible financing to support the acquisition of HEIs from Point.
“Home equity investments represent a natural extension of our credit facility capabilities,” Rahul Jha, head of principal finance at Cross River, said. “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.”
Teddy Tawil, co-head of opportunistic credit at MidOcean Partners, said, “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.”
MidOcean recently entered into a forward flow purchase agreement with Point to purchase up to $600 million of Point-originated HEIs.
“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,” Jordan Fox, head of capital markets at Point, said. “We’re excited about the future of HEIs and value our strong partnership with Cross River and MidOcean.”
