U.S. Home Equity Fund I (US HEF), a first-of-its-kind real estate investment fund managed by Nada Asset Management (Nada), has acquired 132 Home Equity Agreements (HEAs) from an affiliate in a $10 million+ transaction. The acquired HEAs expand the fund’s diversified portfolio of owner-occupied homes and further advance its mission to provide accredited investors with direct access to the $34 trillion U.S. home equity market.
The transaction marks an important step in scaling the fund’s portfolio with already-originated assets. These agreements span a wide range of geographies, property types, and homeowner profiles, helping accelerate capital deployment into a fast-growing investment category.
Nada will host a live call on Thursday, May 22, 2025, at 2:00 PM EDT to provide a detailed overview of the newly acquired home equity agreements. The call will cover the geographic distribution, underwriting process, expected performance, and how these assets fit into the broader fund strategy. Investors and interested parties can register by clicking here.
Launched earlier this year, U.S. Home Equity Fund I is designed to bring institutional-grade access and structure to home equity investing. Through a diversified pool of HEAs, the fund offers investors exposure to residential real estate appreciation while limiting downside risk through capped exposure and asset-level diversification.
What is a Home Equity Agreement (HEA)?
Unlike traditional debt-based financing, a Home Equity Agreement allows homeowners to tap into their equity without monthly payments or interest. In exchange for a lump-sum payment, the homeowner agrees to share a portion of their home’s future value with the fund. For investors, this structure provides a way to participate in home price appreciation without the burdens of property ownership.
“Home equity has long been the foundation of wealth in the U.S., yet until recently, there’s been no direct, scalable way for investors to participate,” said John Green, Co-Founder and COO of Nada. “HEAs have changed that, and this acquisition is another step forward in building the most diversified, investor-aligned home equity portfolio available.”
The U.S. home equity market has grown to over $34 trillion, nearly tripling since 2013. Institutional adoption of HEAs has accelerated, with $1.1 billion in securitizations completed in 2024 and rating methodologies from DBRS Morningstar and KBRA helping cement the asset class in institutional portfolios.
A Structured Approach for Long-Term Growth
U.S. Home Equity Fund I targets net IRRs of 14-17%, focusing on owner-occupied homes for stability and emphasizing downside protection through an exchange rate mechanism unique to HEAs. With assets originated and serviced by Nada through its platform, the fund is designed for transparency, and scalability.
“This is a defining moment for HEAs,” said Tore Steen, CEO of Nada. “The market is now large enough, and the infrastructure mature enough, for home equity to stand alongside more traditional real estate assets in investor portfolios. U.S. Home Equity Fund I is structured to meet that opportunity head-on.
Since 2022, Nada has originated more than 250 home equity agreements comprising over $115 million in home value and its active HEA portfolio has delivered realized payoffs with a weighted average IRR of 17% since inception.
To learn more, visit www.homeshares.co.
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Media Contact:
Kevin Vandenboss
media@nada.co
Source: Prodigy.press
Release ID: 1517466
