The securitization is Unison’s second under DBRS Morningstar’s ratings criteria for the U.S. Home Equity Investments asset class
SAN FRANCISCO, June 5, 2024 /PRNewswire/ — Unison, the pioneer of equity sharing agreements, closed a securitization of $215 million of assets, supporting the U.S. Home Equity Investments (HEI) asset class and increasing access to institutional investors who want to participate in this emerging sector. This securitization is the second of Unison’s to take place after DBRS Morningstar finalized their ratings criteria for the burgeoning asset class in 2023.
DBRS Morningstar rated Unison’s senior bond BBB, and the mezzanine bond BB, setting the precedent for this and future rated securitizations to take place.
Unison’s equity sharing agreements help homeowners who otherwise struggle to harvest their trapped equity, as the longtime available solutions require them to take on enormous additional debt. This transaction further enables Unison to empower homeowners to renovate their homes, save for retirement, and consolidate their debt, rather than drastically exacerbating it. Unison is proud to provide this innovative alternative both for homeowners in need and investors pursuing efficient and scalable investment opportunities into one of the largest asset classes in the world: owner-occupied residential real estate.
The transaction closed June 5, 2024 and included Nomura as structuring agent and bookrunner. Mayer Brown LLP served as the legal counsel of the issuer, and Morgan, Lewis & Bockius LLP served as the legal counsel of the initial purchaser.
As Unison’s second rated securitization after DBRS Morningstar finalized the ratings criteria for the HEI asset class, we believe the transaction is a significant step forward in validating HEI as a mainstream asset for institutional and other investors. As the pioneer of the equity sharing agreement, Unison is excited to continue to innovate on behalf of both homeowners and investors who seek additional options to suit their needs.
Unison’s Chief Investment Officer Matthew O’Hara describes the securitization as “good news for homeowners and investors alike,” as continued confirmation of HEI as a reliable and gainful asset “will ensure their availability to those seeking scalable investment opportunities into owner-occupied residential real estate, as well as those who could most benefit from an innovative financing alternative.”
As a market leader, Unison Investment Management, LLC (UIM) helps homeowners access the accumulated value of their homes while enabling institutional investors to access U.S. residential home price appreciation. Their portfolios provide low volatility and high risk-adjusted net returns relative to other major asset classes.
About Unison:
Unison is a San Francisco and Omaha-based company that is pioneering a smarter, better way to own your home. Until now, the only way to harvest hard-earned equity was by selling your home, or taking on enormous additional debt. Through Unison residential equity agreements, we help homeowners access their equity flexibly with no monthly payments or interest. We enhance home affordability, reduce debt, and deliver a less risky way for homeowners, investors, and society to think about that important asset – the home. Unison Investment Management is committed to providing institutional investors extensive transparency and innovative product offerings for this new asset class. For additional information, visit www.unison.com and www.unisonim.com.
Contact:
Helene Ton Anderson
[email protected]
SOURCE Unison
