
Home equity investment platform Unlock Technologies announced it received a new multimillion dollar commitment to help support the expansion of its consumer financing contracts.
The $250 million capital agreement with D2 Asset Management guarantees the purchase of
"None of what we do is possible without these strategic financing deals," Unlock chief capital officer Peter Silberstein said in a press release. "This partnership with D2 provides us with the capital foundation to address the very real and urgent need for creative financial products in today's dynamic market."
Total investments garnered by Unlock now exceed $1 billion, and the company has assisted approximately 14,000 homeowners since its launch in 2020, its leaders said.
Unlock is one of several providers of home equity investment contracts, which are sometimes referred to as shared appreciation agreements. The products offer homeowners, some of whom may not qualify for traditional home equity lending products, access to a cash share of their property's value for a fixed length of time, usually with no monthly payments required. Full repayment of an agreed-upon share, including any appreciated value, becomes due at the end of the term.
"This investment aligns with our thesis around residential real estate and the power of strategic partnerships to expand access to financing tools for homeowners who may otherwise be locked out of their equity," said Luke Doramus, founder and managing partner of D2.
"In today's housing market, where high interest rates have limited traditional refinancing and home equity options, Unlock's platform delivers a timely and much-needed solution," he added.
How the home equity investment space has developed
Although products were first launched 20 years ago, the growth of the HEI segment picked up considerable momentum in the past decade as
Coming alongside the rise in the number of providers, the sector has also found itself involved with its
Much of the criticism against shared agreement platforms revolves around alleged deceptive marketing tactics, with some customers unaware of potential risks of the contracts until they faced foreclosure.
As the profile of HEIs have grown, consumer advocates have pushed for stricter regulation, including classification of contracts as loans that would require providers to comply with the Truth in Lending Act and additional rules mortgage lenders must follow.
Many platform leaders have attempted to address the criticism,
Apart from investors' interest, current housing market trends also appear to be providing companies in the space with momentum for the rest of 2025 and beyond,