Splitero, a FinTech company known for its innovative home equity solutions, has recently announced a significant funding boost.
The firm has secured a programmatic purchase commitment worth up to $350m from funds managed by Blue Owl Capital, specifically from their Alternative Credit strategy funds.
This substantial investment is set to purchase Home Equity Investments (HEIs) offered by Splitero. These financial arrangements allow homeowners to obtain a lump sum of cash in exchange for a share of their home’s future value, presenting an attractive alternative to traditional debt models.
At its core, Splitero provides services that enable homeowners to unlock their home equity without the need for monthly repayments or additional debt. This model is particularly appealing in today’s economic climate, where consumer debt levels are at record highs and the cost of living continues to escalate.
The new funds will be used to broaden Splitero’s reach, recently expanded to include Tennessee and Virginia. This expansion is aimed at providing more homeowners across these states with the opportunity to leverage their home equity to secure their financial futures, whether it’s for paying off debts, funding home renovations, or other financial needs.
“Splitero is thrilled to partner with Blue Owl as we continue our mission to provide homeowners the support they need,” Splitero Founder and CEO Michael Gifford remarked. “This investment will ensure that more homeowners can access their home equity to secure their financial future.”
Echoing this sentiment, Ivan Zinn, Head of Alternative Credit at Blue Owl, commented, “Blue Owl is pleased to provide a capital commitment from its funds that will further enable Splitero to expand homeowners’ access to capital. We look forward to seeing Splitero’s continued success and helping support them in this next phase of growth.”
This strategic investment follows data from ICE Mortgage Monitor, which shows that U.S. homeowners collectively hold $11.5 trillion of accessible home equity, highlighting the vast potential for Splitero’s services in the market.
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