Latest news with #HEAs
Yahoo
a day ago
- Business
- Yahoo
First They Bought Entire Neighborhoods – Now Wall Street Is Coming For The Equity In Your Neighbor's Home
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Wall Street's move into single-family housing made national headlines just a few years like Blackstone and Invitation Homes were on a buying spree, snapping up tens of thousands of homes and building large-scale rental portfolios. Entire communities were developed specifically to rent, not own. It was one of the biggest shifts in the U.S. housing market in decades, and it priced out plenty of would-be homeowners in the process. That frenzy has cooled. But the capital hasn't gone far. Now, instead of buying the house, institutional investors are buying the upside. They're targeting the equity inside owner-occupied homes. This new strategy doesn't involve tenants or any property management. Just a stake in future home appreciation. The instrument making this possible is called a Home Equity Agreement (HEA).It gives homeowners a lump sum of cash in exchange for a share of the home's future value when it sells. Unlike a home equity line of credit (HELOC), there's no debt, monthly payment or interest rate. That model has gained traction fast, especially with firms looking for real estate exposure without operational drag. Companies like Barclays, KKR, Nomura, Carlyle Group and others have invested billions of dollars into securitizations backed by HEAs. These securitizations have given large investors a new pipeline into U.S. residential equity. The structure of HEAs is designed to give investors returns that outperform the actual price movement of the home. This is achieved through an equity exchange rate. In simple terms, if the home's value increases by 3% annually, investors can realize annual returns of 15% or more. And while appreciation is the obvious draw, the downside protection is quietly just as important. If home prices fall, the same exchange rate provides a buffer that allows investors to still come out ahead with positive gains. All of this is happening against the backdrop of one of the biggest pools of wealth in the country; $35 trillion in U.S. home equity. Most of it is sitting idle and untapped. It was only a matter of time before institutional investors created a new opportunity out of this market. HEAs weren't structured for individuals, and the funds buying them weren't open to the public. However, that's beginning to change. , a fintech-backed platform, is opening the door through its U.S. Home Equity Fund (HEF). The private fund that allows accredited investors to participate in a diversified portfolio of HEAs. The fund invests in home equity in some of the most stable housing markets across the U.S. and has achieved a 17% IRR on its realized investments since inception. The single-family rental boom may have dominated the past decade, but home equity is next. Wall Street has already moved in. Now, with the right access point, individual investors can follow. Image: Shutterstock This article First They Bought Entire Neighborhoods – Now Wall Street Is Coming For The Equity In Your Neighbor's Home originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
13-06-2025
- Business
- Yahoo
Nada's U.S. Home Equity Fund I Acquires $10 Million in Home Equity Agreements to Expand Diversified Portfolio
Nada's U.S. Home Equity Fund I has acquired 132 home equity agreements for more than $10 million, expanding its portfolio and accelerating investor access to the $34T U.S. home equity market. Dallas, TX, June 12, 2025 (GLOBE NEWSWIRE) -- U.S. Home Equity Fund I (US HEF), a first-of-its-kind real estate investment fund managed by Nada Asset Management (Nada), has acquired 132 Home Equity Agreements (HEAs) from an affiliate in a $10 million+ transaction. The acquired HEAs expand the fund's diversified portfolio of owner-occupied homes and further advance its mission to provide accredited investors with direct access to the $34 trillion U.S. home equity market. The transaction marks an important step in scaling the fund's portfolio with already-originated assets. These agreements span a wide range of geographies, property types, and homeowner profiles, helping accelerate capital deployment into a fast-growing investment category. Nada will host a live call on Thursday, May 22, 2025, at 2:00 PM EDT to provide a detailed overview of the newly acquired home equity agreements. The call will cover the geographic distribution, underwriting process, expected performance, and how these assets fit into the broader fund strategy. Investors and interested parties can register by clicking here. Launched earlier this year, U.S. Home Equity Fund I is designed to bring institutional-grade access and structure to home equity investing. Through a diversified pool of HEAs, the fund offers investors exposure to residential real estate appreciation while limiting downside risk through capped exposure and asset-level diversification. What is a Home Equity Agreement (HEA)? Unlike traditional debt-based financing, a Home Equity Agreement allows homeowners to tap into their equity without monthly payments or interest. In exchange for a lump-sum payment, the homeowner agrees to share a portion of their home's future value with the fund. For investors, this structure provides a way to participate in home price appreciation without the burdens of property ownership. 'Home equity has long been the foundation of wealth in the U.S., yet until recently, there's been no direct, scalable way for investors to participate,' said John Green, Co-Founder and COO of Nada. 'HEAs have changed that, and this acquisition is another step forward in building the most diversified, investor-aligned home equity portfolio available.' The U.S. home equity market has grown to over $34 trillion, nearly tripling since 2013. Institutional adoption of HEAs has accelerated, with $1.1 billion in securitizations completed in 2024 and rating methodologies from DBRS Morningstar and KBRA helping cement the asset class in institutional portfolios. A Structured Approach for Long-Term Growth U.S. Home Equity Fund I targets net IRRs of 14-17%, focusing on owner-occupied homes for stability and emphasizing downside protection through an exchange rate mechanism unique to HEAs. With assets originated and serviced by Nada through its platform, the fund is designed for transparency, and scalability. 'This is a defining moment for HEAs,' said Tore Steen, CEO of Nada. 'The market is now large enough, and the infrastructure mature enough, for home equity to stand alongside more traditional real estate assets in investor portfolios. U.S. Home Equity Fund I is structured to meet that opportunity head-on. Since 2022, Nada has originated more than 250 home equity agreements comprising over $115 million in home value and its active HEA portfolio has delivered realized payoffs with a weighted average IRR of 17% since inception. To learn more, visit This press release may contain forward-looking statements. Forward-looking statements describe future expectations, plans, results, or strategies (including product offerings, regulatory plans, and business plans) and may change without notice. You are cautioned that such statements are subject to risks and uncertainties that could cause future results to differ materially from those projected. Media Contact:Kevin Vandenbossmedia@ in to access your portfolio
Associated Press
18-02-2025
- Business
- Associated Press
Nada Launches U.S. Home Equity Fund I, Offering Access to One of the Fastest-Growing Asset Classes in Real Estate
02/18/2025, Dallas, TX // KISS PR Brand Story PressWire // Nada has announced the launch of U.S. Home Equity Fund I (US HEF), a first-of-its-kind fund designed to provide qualified investors with direct exposure to the $35 trillion U.S. home equity market through a diversified portfolio of Home Equity Agreements (HEAs), available on their newly launched investment platform, Homeshares. Since 2013, U.S. home equity has nearly tripled to $35 trillion ( Federal Reserve, Q3 2024), and HEAs have rapidly gained institutional adoption with banks, insurers, and private credit funds increasing participation over the past two years. In 2024, $1.1 billion in HEA-backed securitizations and new rating methodologies from DBRS Morningstar and KBRA cemented their place in institutional portfolios. With HEAs now firmly established as a scalable investment, US HEF expands access beyond institutions, allowing qualified accredited investors, family offices, private wealth groups, and a broader set of alternative asset managers to participate in a structured, scalable approach to home equity investing. 'We are witnessing the emergence of one of the most exciting new asset classes in real estate,' said John Green, Founder and COO of Nada. 'Home equity is the single largest source of wealth in the U.S., yet until recently, the only way to access it was through direct homeownership or traditional mortgage-backed securities. HEAs have changed that, creating a new way for investors to participate.' What is a Home Equity Agreement (HEA)? A Home Equity Agreement (HEA) gives homeowners financial flexibility by accessing their home equity without debt, monthly payments, or interest. Instead of a loan, they receive an upfront lump-sum payment in exchange for a share of their home's future value. For investors, HEAs provide direct exposure to residential real estate appreciation with enhanced returns without the burdens of property ownership. Unlike traditional homeownership, where appreciation is captured dollar-for-dollar, HEAs are structured so that investors earn a multiple of the home's appreciation rate, accelerating returns relative to home value growth. A Structured Approach to Home Equity Investing U.S. Home Equity Fund I provides investors with a structured, risk-adjusted way to gain exposure to residential real estate—one of the most stable and high-growth asset classes. US HEF I is built for risk-adjusted growth and institutional liquidity, targeting 14-17% net IRR through exposure to home price appreciation. The fund focuses on owner-occupied properties for stability and diversification while limiting exposure to 35% of any single property's value to ensure downside protection. With assets positioned for future securitization or institutional sales, US HEF offers a scalable, institutional-grade approach to home equity. With home equity emerging as a recognized institutional investment class, U.S. Home Equity Fund I provides an institutional-caliber approach to an asset that has been a cornerstone of wealth creation for decades—now structured for broader participation. Nada: Leading the Next Era of Real Estate Ownership Nada builds on six years of innovation in home equity investing. Having transacted over $100M in gross asset value. Its active HEA portfolio has delivered realized payoffs with a weighted average IRR of 19.3% since inception. ' This is a defining moment for HEAs as an asset class," said Tore Steen, CEO of Nada. " U.S. Home Equity Fund I is structured to capitalize on this momentum—offering a rare opportunity in a rapidly growing market. ' For more information, visit Forward-Looking Statements This press release may contain forward-looking statements describing future expectations, plans, results, or strategies. These statements are subject to risks and uncertainties that may cause actual outcomes to differ materially from those projected. Changes in product offerings, regulatory plans, and business strategies are potential factors influencing such differences. Media Contact:
