Cross River Bank, a Fort Lee-based technology infrastructure provider for financial services, announced Wednesday the closing of a $100 million revolving credit facility for an investment vehicle managed by MidOcean Partners. The facility is backed by a specialized asset class: Home Equity Investments (HEIs) originated by Point Digital Finance.
This deal signals a significant expansion for Cross River’s Principal Finance Group (PFG) as it broadens its reach into diverse asset-backed credit markets.
The revolving credit facility provides MidOcean with the liquidity needed to acquire HEIs from Point. This transaction is part of a larger momentum for MidOcean, which recently committed to purchasing up to $600 million in HEIs through a forward flow agreement with Point.
Home Equity Investments (HEIs) allow homeowners to access their property’s value without taking on traditional monthly loan payments. Instead, investors like MidOcean provide upfront capital in exchange for a share of the home’s future appreciation.
The collaboration has been met with enthusiasm from all three leadership teams, who view the deal as a milestone for the evolution of residential finance.
Rahul Jha, head of Principal Finance at Cross River, noted that home equity investments are a “natural extension” of the bank’s credit capabilities and emphasized the value of partnering with best-in-class platforms. Teddy Tawil, co-head of Opportunistic Credit at MidOcean Partners, echoed this sentiment, praising Cross River’s ability to deliver “innovative, scalable solutions” within the asset-backed credit market. Furthermore, Jordan Fox, head of Capital Markets at Point, highlighted that the closing of this facility underscores the “rapid institutionalization” of the HEI asset class, signaling an expanding capital base that will benefit homeowners and investors alike.
