Home Equity Investment Strategy

The Kingsbridge Alternative Strategies Fund, LP is an alternative to traditional yield investments like bonds and private credit. The “alternative yield” is generated by investing in a portfolio of Home Equity Investments (HEIs) and the equity certificates of securitized pools of Home Equity Investments.

Home Equity Investments are structured residential real estate option purchase agreements with mitigated downside participation and accelerated upside participation, secured by a lien.

As a non-debt solution, Home Equity Investments allow homeowners to gain access to their largest asset: their home equity.

The Economics of The Home Equity Investment Strategy

For two-thirds of U.S. homeowners, home equity is their largest asset, and home equity is greater than any investment or retirement savings

In the past, there have only been three ways for homeowners to access their home equity:

  • Sell the home
  • Mortgage cash-out refinance
  • Home equity cash-out or Home Equity Line of Credit (HELOC)

Home Equity Investments are a new tool available for homeowners to access liquidity using their home equity without taking on debt.