Splitero Closes $283m Hei Securitization With Strong Investor Appetite

Another home equity investment (HEI) securitization is hitting the market, this time issued by financial technology company Splitero in partnership with funds managed by Blue Owl Capital, Antarctica Capital and Kingsbridge Investment Partners.

The companies closed a $283.3 million rated HEI securitization on Nov. 25 in a transaction that saw strong investor demand. In total, it was 9.25 times oversubscribed, with $2 billion in demand for the A-1 senior class.

Michael Gifford, founder and CEO of Splitero, said in a statement that the “overwhelmingly positive response from investors to our inaugural securitization highlights the strength of our platform and product positioning within the market.” 

HEIs provide homeowners a lump sum of cash in exchange for a share of their home’s appreciation, which can be used to pay off debt, complete renovations and cover other expenses. The investment is typically repaid when the home is sold or the mortgage is refinanced.

According to Splitero, its product does not require income verification and does not involve monthly payments. The company offers a proprietary Maturity Match platform that aligns the HEI term length with the homeowner’s remaining primary mortgage timeline.

In December 2024, Splitero announced a purchase commitment from funds managed by asset manager Blue Owl Capital. The funds acquired $350 million of HEIs and Splitero expanded to several new states shortly thereafter.

“We are pleased to support Splitero’s inaugural securitization and deepen our relationship as they scale a solution that aligns the interests of homeowners and institutional investors,” Ivan Zinn, head of alternative credit at Blue Owl, said in a statement. 

Splitero Trust 2025-1 issued $195.5 million of senior class A-1 securities, $48 million of mezzanine class A-2 securities, $11.5 million of subordinate class B-1 securities, and $28.3 million of subordinate class B-2 securities, all rated by Morningstar DBRS.

Barclays Capital served as the structuring agent and acted as a bookrunner alongside Nomura Securities International.