Cross River Bank, a Fort Lee-based technology infrastructure provider that offers embedded financial solutions, announced it has provided a $100 million revolving credit facility to an investment vehicle managed by MidOcean Partners, LP.
The facility, structured by Cross River’s Principal Finance Group, is secured by home equity investment contracts and originated by Point Digital Finance, Inc.
The structure provides MidOcean with flexible financing to support the acquisition of HEIs from Point. The deal exemplifies Cross River’s strategy of diversifying its asset class coverage and ability to provide credit facilities across a growing range of markets.
“Home equity investments represent a natural extension of our credit facility capabilities,” said Rahul Jha, head of principal finance at Cross River.
“This facility reflects our commitment to partnering with leading asset managers like MidOcean and best-in-class fintech platforms like Point, whose innovative approach to home equity investments is unlocking new opportunities for homeowners and investors alike.”
MidOcean, a premier alternative asset manager specializing in middle-market private equity, alternative credit and structured equity, recently entered into a forward flow purchase agreement with Point, a leading home equity investment platform, to purchase up to $600 million of Point-originated HEIs.
“We are excited to partner with Cross River on this transaction as we continue to scale our presence in the HEI market,” said Teddy Tawil, co-head of opportunistic credit at MidOcean Partners.
“Cross River’s financing structure highlights their ability to deliver innovative, scalable solutions in the asset-backed credit market.”
“Closing this facility with Cross River and MidOcean underscores the rapid institutionalization of home equity investments and the expanding capital base supporting the asset class,” said Jordan Fox, head of capital markets at Point Digital Finance.
“We’re excited about the future of HEIs and value our strong partnership with Cross River and MidOcean.”
With this transaction, Cross River continues to serve as a strategic capital provider capable of delivering flexible financing solutions across an expanding range of asset classes.
