Finance of America, a provider of home equity-based financing solutions for retirement, looks to expand its client base and grow originations, securing its second partnership in the last two months.

The lender and funds managed by Blue Owl Capital, a New York-based alternative asset manager, enhanced their previous partnership with a $2.5 billion commitment focused on product innovation and distribution tailored to retirees, it was announced Friday.

"This is a pivotal moment not just for Finance of America, but for the senior finance market as a whole," said Graham Fleming, CEO of Finance of America, in a press release. "By aligning with Blue Owl, we are creating a platform of scale and innovation to better serve one of the fastest-growing demographics in the United States."

The partnership also includes a $50 million equity investment in Finance of America, securing long-term alignment between the companies.

Finance of America focuses on reverse mortgages, which grants retirees access to equity without monthly payments. This partnership will help the lender find other ways to finance seniors.

Finance of America struck a deal with Better Home and Finance in October as well, which allows Finance of America to offer home equity loans and home equity line of credit products using Better's proprietary Tinman AI platform. Better also integrated Finance of America's reverse mortgage products into its platform.

"That's one example of a way that we're trying to reach additional retirees and people in the senior community that may not necessarily see the reverse mortgage specifically as the right product for them," Michael Fant, senior vice president of finance at Finance of America, told National Mortgage News. "In terms of additional product expansion or innovation, [there's] more to come."

Blue Owl has also been active recently, making another $2.5-billion investment in Point, a leading home equity investment platform, the companies announced Wednesday. The collaboration has brought home equity investment-backed securitizations to market in the past, raising $390 million in November and $248 million in June, Point said.

Blue Owl's investment in Finance of America gives it access to the more than 10,000 Americans entering retirement age every day, the fastest growing demographic in the United States, Fant said.

"We believe Finance of America is uniquely positioned to redefine how financial products are delivered to retirees," said David Aidi, senior managing director and cohead of asset based finance at Blue Owl, in the press release. 

"This partnership provides the capital, the strategic alignment, and the innovation engine to build category-defining products at scale," added Ray Chan, senior managing director and cohead of asset based finance at Blue Owl.

Finance of America reported a net loss in the third quarter this year, but Fitch Ratings still assigned the lender a positive outlook in its final nonbank mortgage company review of the year, largely due to the credit enhancements it has done over the last 12-18 months and the investment from Blue Owl, Fant said.