Nada fund buys 132 home equity agreements from affiliate

U.S. Home Equity Fund I, a real estate investment fund managed by Nada Asset Management, has purchased 132 home equity agreements from an affiliate in an over $10 million transaction.

Nada launched the fund in February of this year, with the aim of creating a diverse portfolio of HEAs, also referred to as home equity investment contracts. This is the fund’s first transaction.

Nada started in 2021 and has originated more than 250 home equity agreements comprising over $115 million in value with its active portfolio delivering realized payoffs with a weighted average internal rate of return of 17% since inception, the company said.

What are home equity agreement contracts?

In a typical home equity agreement, the homeowner receives an upfront payment for a share in the property’s future…