Unlock Technologies (a leading home equity investment technology company) and Saluda Grade (a private alternative real estate investment firm) have secured a $100 million revolving credit facility led by Texas Capital Bank. This revolving credit facility will provide Saluda Grade with additional capital to purchase home equity agreement (HEA) contracts to serve the growing needs of its HEA investments.
Texas Capital is the latest lender to enter the fast-growing HEA space. And Unlock selected Texas Capital for its expertise in warehouse financing and ability to structure and support Saluda Grade-issued Unlock HEA securitizations. The $100 million credit facility led by Texas Capital represents Saluda Grade’s second financing of HEA investments.
Earlier this year, Saluda Grade secured a $300 million warehouse line from Barclays Bank PLC.
KEY QUOTES:
“Unlock is the industry’s fastest-growing shared equity platform. Since our founding in 2020, we’ve built a next-generation product and helped more than 4,500 homeowners tap into their home equity. We were the first HEA company to increase home equity access for consumers who had less-than-perfect credit or had debt-to-income constraints. We’re excited to partner with Texas Capital as we begin our next stage of growth.”
— Jim Riccitelli, CEO and co-founder of Unlock
“We strive to provide clients with unique capital solutions, particularly given Texas Capital’s dedication to being the first call for leading clients in our covered industries. This credit facility enables both Saluda Grade and Unlock to grow their platforms and meet demand from investors.”
— Daniel Hoverman, Head of Corporate and Investment Banking at Texas Capital
“We continue to see unparalleled excitement around home equity agreements and shared equity products on both the consumer and investor sides. Unlock’s HEA provides a streamlined approach to accessing home equity in an uncertain economy where consumers continue to grapple with high interest rates and limited availability of mortgage products.”
– Ryan Craft, CEO of Saluda Grade
