Blue Owl Capital announced on November 5, 2025 that it co‑sponsored a $390 million securitization of Point’s Home Equity Investment (HEI) assets, which closed on October 28, 2025. The deal is the largest HEI securitization ever issued, underscoring the growing maturity of the asset class and Blue Owl’s expanding footprint in alternative credit.
The structure includes four tranches: a senior A‑1 tranche that raised $254.2 million, a mezzanine BBB‑A‑2 tranche that raised $46.6 million, a subordinate BB‑B‑1 tranche that raised $45.9 million, and a subordinate B‑B‑2 tranche that raised $43.3 million. Twenty‑nine unique investors, including eight new entrants, placed orders totaling more than $1.6 billion, reflecting strong demand for high‑quality home‑equity exposure.
Blue Owl’s participation aligns with its fee‑centric model, which relies on permanent capital and recurring management fees. By securitizing HEI assets, the firm creates a new fee‑generating stream while preserving its core holdings. Home‑equity assets offer stable, mortgage‑backed cash flows and a diversified risk profile, making them attractive for institutional investors seeking yield in a low‑interest‑rate environment.
Point has a proven track record of successful securitizations, completing its third deal of 2025 and its sixth overall since 2015. Prior issuances include a $248.6 million HEI securitization in May 2025 and a $141 million deal in May 2024. The partnership demonstrates Point’s expertise in structuring HEI products and Blue Owl’s ability to package them for institutional investors.
Investor composition was broad, encompassing pension funds, insurance companies, and asset managers. Accounts managed by a Blue Owl affiliate acquired a portion of the notes, indicating confidence in the firm’s underwriting and asset management capabilities. The oversubscription—orders exceeding the issuance by more than four times—highlights the market’s appetite for HEI securities.
The transaction expands Blue Owl’s alternative credit platform, providing investors with diversified exposure to high‑quality home‑equity assets and reinforcing the firm’s permanent‑capital, fee‑centric strategy. It also signals the continued maturation of the HEI market, positioning Blue Owl to pursue additional securitizations and further deepen its presence in the alternative credit space.
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