Finance of America Companies Inc. (FOA) entered into a $2.5 billion strategic partnership with Blue Owl Capital, a leading alternative asset manager that manages more than $295 billion in assets. The deal includes a $50 million equity investment that deepens the long‑standing relationship between the two firms and provides FOA with capital to accelerate product innovation and broaden its distribution in the senior home‑equity market.
FOA’s recent financial performance underscores the strategic importance of the partnership. In the third quarter of 2025, the company reported a GAAP net loss of $29 million but an adjusted net income of $33 million, reflecting disciplined cost management amid a 72% year‑over‑year decline in revenue to $80.85 million. The revenue drop was driven by a contraction in funded reverse‑mortgage volume, but the company’s adjusted earnings improved thanks to lower operating expenses and a shift toward higher‑margin product lines. In contrast, FOA returned to profitability in 2024, posting a GAAP net income of $40 million and an adjusted net income of $14 million, and saw funded volume rise 19% year‑over‑year.
The partnership is designed to expand FOA’s product suite beyond its core reverse‑mortgage offerings. A key focus is the HomeSafe Second product, a second‑lien reverse mortgage that allows homeowners aged 55 and older to access equity without increasing monthly payments. Blue Owl’s capital will support the scaling of this product and the development of new digital pre‑qualification tools that aim to streamline the customer experience and increase market penetration in the $14 trillion senior home‑equity market.
Blue Owl’s role extends beyond capital injection. The firm’s credit and capital resources will be deployed to enhance FOA’s underwriting capabilities, support technology upgrades, and fund strategic acquisitions that can accelerate growth. Blue Owl’s investment strategy emphasizes direct lending and real‑asset exposure, positioning it to provide FOA with both financial flexibility and operational expertise in niche markets.
FOA’s position as the largest issuer of home‑equity conversion mortgage‑backed securities (HECM MBS) gives it a competitive advantage in a rapidly expanding market. The partnership signals a broader trend of alternative asset managers investing in niche financial services that serve the aging U.S. population. By combining FOA’s market presence with Blue Owl’s capital and expertise, the company is better positioned to capture share of the growing senior home‑equity market and to innovate new product offerings that meet evolving consumer needs.
CEO Graham Fleming emphasized the strategic significance of the partnership, stating that it “creates a platform of scale and innovation to better serve one of the fastest‑growing demographics in the United States.” He added that the capital infusion will enable FOA to accelerate its digital transformation and expand its product portfolio, reinforcing the company’s long‑term growth trajectory.
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