Global investment firm Carlyle (NASDAQ: CG) announced an agreement to purchase up to $300 million of equity sharing home loans from Unison, a pioneer in equity sharing agreements. Carlyle also made a strategic investment into Unison, facilitating the launch of the Unison Equity Sharing Home Loan product, which allows homeowners to access their growing pool of home equity.
U.S. homeowners possess nearly $32 trillion in home equity, but many are not refinancing their low-interest first mortgages, rendering this significant asset inaccessible despite appreciating home values.
Unison's new product aims to combine the benefits of home loans and equity sharing agreements into a unique mortgage solution. This enables homeowners to convert home equity into cash with low monthly payments and offers a fixed below-market interest rate while allowing them to benefit from their home's appreciation potential.
“Our collaboration with Carlyle enables the Unison Equity Sharing Home Loan to turn dormant home equity into an active tool for financial empowerment for millions of Americans,” said Thomas Sponholtz, founder and CEO of Unison.
Matthew O’Hara, Chief Investment Officer at Unison, added, “We aim to provide homeowners with the financial stability and flexibility lacking in traditional loan products and this partnership creates a win-win situation for both homeowners and Carlyle as an investment partner.”
"We are excited to partner with Unison to provide an attractive solution for homeowners to access their appreciating home equity,” said Akhil Bansal, Head of Credit Strategic Solutions at Carlyle. "Unison is a leader in equity sharing agreements and we’re confident our expertise in asset-backed finance can help increase origination and awareness for this new capital solution for homeowners."
The transaction was led by Carlyle’s Credit Strategic Solutions (CSS), part of its Global Credit business focused on private fixed income and asset-backed investments. CSS has deployed nearly $5 billion since 2021 and manages roughly $7 billion in assets as of June 30th, 2024.
Carlyle is a global investment firm managing $435 billion in assets as of June 30, 2024. The firm operates through three segments: Global Private Equity, Global Credit, and Global Investment Solutions. Carlyle employs over 2,200 people across 29 offices worldwide.
Unison is based in San Francisco and Omaha. It offers innovative ways for homeowners to access their home equity without selling or taking on additional debt. With over $1.8 billion in assets under management, Unison has empowered 12,000 households through its equity sharing agreements.
For further information:
Kristen Ashton
Phone: +1 212-813-4763
kristen.ashton@carlyle.com
Carlyle
Gary Bird
FortyThree, Inc.
Phone: +1 831-888-9011
unison@43pr.com
Unison