Point, Blue Owl Funds Close Record $390m Hei Securitization

Point and funds managed by Blue Owl Capital have issued a $390 million securitization of home equity investment (HEI) assets, the companies announced on Wednesday. 

The transaction, which closed on Oct. 28, is the third rated securitization so far this year and the sixth overall since 2015 for Point, a California-based home equity investment platform. It also marks the largest bond issuance in the HEI space to date, signaling the growing maturity of the asset class, according to the company.

“This transaction reflects growing confidence in home equity investments as a mainstream asset class,” Eddie Lim, co-founder and CEO of Point, said in a statement. 

The assets were originated and will be serviced by Point. The issuance is the first HEI securitization to comply with the EU and UK securitization and transparency frameworks, broadening global access to the HEI market.

Point Securitization Trust 2025-2 issued $254.2 million of senior Class A-1 securities; $46.6 million of mezzanine Class A-2 securities; $45.9 million of subordinate Class B-1 securities; and $43.3 million of subordinate Class B-2 securities.

While accounts managed by an affiliate of Blue Owl acquired a portion of the notes, 29 unique investors participated in the transaction, including eight new entrants. Investor demand was strong, with orders totaling more than $1.6 billion.

Ivan Zinn, head of alternative credit at Blue Owl, said this is the third transaction the firm has co-sponsored with Point in a relationship that dates back to 2018. 

“We were able to combine legacy seasoned collateral we acquired earlier this year with new originations purchased directly from Point to issue the largest public HEI securitization to date,” Zinn said in a statement. 

Barclays Capital Inc. served as the sole structuring agent and bookrunner, alongside Nomura Securities International Inc. and Cantor Fitzgerald & Co. In addition, East West Markets LLC and StoneX Financial Inc. acted as co-managers.