Home Equity Investment Strategy

The Kingsbridge Alternative Strategies Fund, LP is a historically low-volatility strategy that is tangential to mortgages and private credit. The Fund invests in a portfolio of Home Equity Investments (HEIs) and the equity certificates of securitized pools of Home Equity Investments.

Home Equity Investments are in-the-money option purchase agreements entered at a discount to the underlying home’s appraised value, 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.