Splitero Announces $350M Capital Commitment from Blue Owl Managed Funds

Rhea-AI Summary

Splitero has secured a significant capital commitment of up to $350 million from Blue Owl Capital managed funds for Home Equity Investments. The fintech company also announced its expansion into Tennessee and Virginia, broadening its home equity solutions reach.

The strategic investment will enable Splitero to help more homeowners access their home equity during a period of rising consumer debt and living costs. According to ICE Mortgage Monitor, U.S. homeowners currently hold $11.5 trillion of accessible home equity. Splitero's business model provides homeowners with immediate cash in exchange for a share of their home's future value, without requiring monthly payments or adding new debt.

Positive

• Secured $350 million capital commitment from Blue Owl Capital funds
• Geographic expansion into two new states (Tennessee and Virginia)
• Access to substantial market opportunity ($11.5 trillion in accessible home equity)

Negative

• None.

Insights

Financial Analyst

The $350M capital commitment from Blue Owl represents a significant development for both companies. For Blue Owl (OWL), this strategic investment through its Alternative Credit strategy aligns with its asset management growth initiatives and diversifies its investment portfolio in the growing home equity investment space. The deal provides exposure to the $11.5T accessible home equity market while generating potential returns through Splitero's HEI program.

The timing is particularly strategic given current market conditions - high consumer debt levels and elevated living costs are driving demand for alternative financing solutions. By avoiding traditional debt structures and instead taking equity positions, this investment model offers lower risk exposure compared to conventional lending. For Blue Owl shareholders, this represents a calculated expansion into consumer finance that could drive fee-based revenue growth.

Market Research Analyst

The expansion into Tennessee and Virginia, coupled with the significant capital injection, positions Splitero to capture growing market demand for alternative home equity solutions. With interest rates remaining elevated, traditional refinancing has become less attractive, creating an opportunity for innovative financial products like HEIs. The timing aligns with homeowners' increasing need to access equity without taking on additional monthly payments.

Current market conditions support this business model - high home values have created substantial equity, while rising consumer debt and living costs drive demand for liquidity solutions. This investment indicates Blue Owl's confidence in both the business model and market opportunity, particularly as traditional lending faces headwinds in the current rate environment.

Home Equity Investment Originator to Provide More Homeowners Access to Equity and Announces Expansion into Tennessee and Virginia

SAN DIEGO, Dec. 5, 2024 /PRNewswire/ -- Splitero, the financial technology company that provides homeowners better options to access their home equity, announced a programmatic purchase commitment from funds managed by Blue Owl Capital ("Blue Owl"). Blue Owl's Alternative Credit strategy funds will purchase up to $350 million of Home Equity Investments.

In addition, Splitero announced today that it expanded its home equity solutions to Tennessee and Virginia to provide more homeowners with access to home equity.

"We are excited to collaborate with Blue Owl as we further drive our mission to provide homeowners the support they need," said Splitero Founder and CEO Michael Gifford. "This investment allows us to ensure that more homeowners can access their home equity to secure their financial future."

"Blue Owl is pleased to provide a capital commitment from its funds that will further enable Splitero to expand homeowners' access to capital," said Ivan Zinn, Head of Alternative Credit at Blue Owl. "We look forward to seeing Splitero's continued success and helping support them in this next phase of growth."

This strategic investment allows Splitero to help more homeowners access equity from their homes as consumer debt reaches all-time highs and the cost of living continues to climb.

According to data from ICE Mortgage Monitor, U.S. homeowners collectively hold $11.5 trillion of accessible home equity. Splitero provides homeowners with a lump sum of cash in exchange for a share of their home's future value with no additional monthly payments or new debt. These Home Equity Investments (HEIs) enable homeowners to access their home equity to improve their lives—whether by paying off debt, funding home renovations, or achieving other financial goals, all without needing to sell their home or refinance an existing low-interest mortgage.

About Splitero
Splitero is a financial technology company that provides homeowners better options to access their home equity. Founded by real estate veterans, Splitero provides a lump sum of cash in exchange for a share of the home's future value. Splitero can help homeowners in Arizona, California, Colorado, Oregon, Tennessee, Utah, Virginia, and Washington access their equity with no monthly payments or new debt. For more information, visit www.splitero.com.

About Blue Owl
Blue Owl (NYSE: OWL) is a leading asset manager that is redefining alternatives.
With $235 billion in assets under management as of September 30, 2024, we invest across three multi-strategy platforms: Credit, GP Strategic Capital, and Real Estate. Anchored by a strong permanent capital base, we provide businesses with private capital solutions to drive long-term growth and offer institutional investors, individual investors, and insurance companies differentiated alternative investment opportunities that aim to deliver strong performance, risk-adjusted returns, and capital preservation.

Together with over 1,050 experienced professionals, Blue Owl brings the vision and discipline to create the exceptional. To learn more, visit www.blueowl.com.

Media Contacts
Jennifer Avrhami, Publicist
Pitch Public Relations
602-885-5366
Jennifer@pitchpublicrelations.com 

Nick Theccanat
Principal, Corporate Communications & Government Affairs
Nick.Theccanat@blueowl.com
+1 212-970-6868

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SOURCE Splitero

FAQ

How much capital did Blue Owl Capital commit to Splitero in December 2023?

Blue Owl Capital managed funds committed up to $350 million for Home Equity Investments to Splitero.

Which new states did Splitero expand its operations to in December 2023?

Splitero expanded its home equity solutions to Tennessee and Virginia.

What is the total accessible home equity held by U.S. homeowners according to ICE Mortgage Monitor?

According to ICE Mortgage Monitor, U.S. homeowners collectively hold $11.5 trillion of accessible home equity.

How does Splitero's Home Equity Investment model work?

Splitero provides homeowners with a lump sum of cash in exchange for a share of their home's future value, without requiring monthly payments or new debt.