Cross River Provides $100 Million Revolving Credit Facility to MidOcean Backed by Home Equity Investments from Point

The facility demonstrates the Bank’s expanding asset class coverage and supports growing lending market

FORT LEE, N.J.--(BUSINESS WIRE)--Cross River Bank (“Cross River”), a technology infrastructure provider that offers embedded financial solutions, today announced it has provided a $100 million revolving credit facility to an investment vehicle managed by MidOcean Partners, LP (“MidOcean”). The facility, structured by Cross River’s Principal Finance Group (“PFG”), is secured by home equity investment contracts (“HEIs”), and originated by Point Digital Finance, Inc. (“Point”).

The structure provides MidOcean with flexible financing to support the acquisition of HEIs from Point. The deal exemplifies Cross River’s strategy of diversifying its asset class coverage and ability to provide credit facilities across a growing range of markets.

"Home equity investments represent a natural extension of our credit facility capabilities," said Rahul Jha, Head of Principal Finance at Cross River. "This facility reflects our commitment to partnering with leading asset managers like MidOcean and best-in-class fintech platforms like Point, whose innovative approach to home equity investments is unlocking new opportunities for homeowners and investors alike."

“We are excited to partner with Cross River on this transaction as we continue to scale our presence in the HEI market,” said Teddy Tawil, Co-Head of Opportunistic Credit at MidOcean Partners. “Cross River’s financing structure highlights their ability to deliver innovative, scalable solutions in the asset-backed credit market.”

MidOcean, a premier alternative asset manager specializing in middle-market private equity, alternative credit, and structured equity, recently entered into a forward flow purchase agreement with Point, a leading home equity investment platform, to purchase up to $600 million of Point originated HEIs.

“Closing this facility with Cross River and MidOcean underscores the rapid institutionalization of home equity investments and the expanding capital base supporting the asset class,” said Jordan Fox, Head of Capital Markets at Point. “We’re excited about the future of HEIs and value our strong partnership with Cross River and MidOcean.”

With this transaction, Cross River continues to serve as a strategic capital provider capable of delivering flexible financing solutions across an expanding range of asset classes, while advancing innovation in the financial services industry.

About Cross River
Cross River provides technology infrastructure powering the future of financial services. Leveraging its proprietary real-time banking core, Cross River delivers innovative and scalable embedded payments, cards, lending and crypto solutions to millions of consumers and businesses. Cross River is backed by leading investors and serves the world’s most essential fintech and technology companies. As a leader in the industry, Cross River is reshaping global finance and financial inclusion. Member FDIC. Find out more at www.crossriver.com.

About MidOcean Partners
MidOcean Partners is a premier New York-based alternative asset manager specializing in middle-market private equity, alternative credit, and structured equity. Since its inception in 2003, MidOcean’s private equity business has targeted investments in high-quality middle-market companies in the business services and consumer sectors. MidOcean’s credit business was launched in 2009 and currently manages a series of alternative credit strategies, collateralized loan obligations (CLOs), and customized separately managed accounts. In 2024, MidOcean expanded its platform to include structured equity, positioning the firm as a leading provider of capital solutions to the middle market. For more information, visit www.midoceanpartners.com.

About Point
Point is the leading home equity platform making homeownership more valuable and accessible. Point’s flagship product, the Home Equity Investment (HEI), empowers homeowners to unlock their equity to eliminate debt, get through periods of financial hardship, and diversify their wealth – without adding to their monthly expenses. Point has worked with more than 20,000 homeowners, unlocking more than $2 billion in home equity. Point’s HEI enables investors to access a previously untapped asset class – owner-occupied residential real estate. Founded in 2015 by Eddie Lim, Eoin Matthews, and Alex Rampell, Point is backed by top investors, including Westcap, Andreessen Horowitz, Ribbit Capital, Greylock Partners, Bloomberg Beta, Blue Owl Capital, Alpaca VC, and Prudential. The company is headquartered in Palo Alto, CA. For more information, please visit www.point.com.