EquiFi Announces Capital Investment from The Palisades Group to Fuel Residential Shared Equity Originations

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Sep 14, 2021, 06:41 ET

SAN JOSE, Calif., Sept. 14, 2021 /PRNewswire/ -- EquiFi Corporation, a premier provider of shared equity home financing, today announced an agreement with The Palisades Group, a global residential credit and real estate asset manager, to fund its EquiFi Funding Instrument (EFI^™) Equity Access product originations. EquiFi brings together homeowners and investors in a unique shared equity contract, allowing both parties to benefit from the future appreciated value of a home. EquiFi offers homeowners financial solutions that are debt free, charge no interest, have no monthly payments, and no fixed term that would force the homeowner to sell or refinance their home.

The funding agreement with The Palisades Group strengthens EquiFi's financial foundation as it accelerates EFI^™ Equity Access originations in California and expects to begin originations in Washington, Arizona, and Florida shortly. EquiFi has previously raised $7 million in equity from a range of private and venture capital investors. "We're excited about this space and thrilled to be part of EquiFi's journey to help homeowners," said Jack Macdowell, managing member and Chief Investment Officer at The Palisades Group. "Our funding will enable EquiFi to continue to address the large demand for intelligent, alternative home financing and home equity access strategies."

The EquiFi Equity Access EFI^™ allows existing homeowners to tap into their home equity as a means of meeting their financial needs without the need to pay back a traditional mortgage loan or HELOC (home equity line of credit), or the accruing interest obligation and limited market scope of reverse mortgages. The growth of shared equity as an alternative to debt resembles the early interest in other industries that have been disrupted through the shared economy. EquiFi accelerates that trend with unique consumer protection features designed to ensure a balance in the cost to the consumer and the return for the investor.

EquiFi has plans to introduce the EFI^™ to provide an opportunity for homebuyers to purchase their ideal home by dramatically reducing monthly payments through the EFI™ co-investment. "The EquiFi platform preserves the dream of home ownership by working with investors who share EquiFi's belief that the home is the cornerstone of wealth creation," said David Shapiro, EquiFi Founder and CEO. "EquiFi is committed to the principle of home ownership for everyone, which will enable entire generations to create wealth and accumulate the financial resources to live comfortably today and retire with dignity tomorrow."

"To align the investor with the capital needs of the homeowner, EquiFi works with a wide variety of institutional investors, including insurance companies and pension funds," continued Shapiro. "Through the EFI^™ these investors can access the $36 trillion residential real estate asset class with $24 trillion in home equity."

About EquiFi
EquiFi's mission is to transform the way that consumers create and manage wealth starting with their most important asset – their home. Organized as a for-profit Public Benefit Corporation, EquiFi is committed to fairness across its entire homebuying ecosystem. Based on a powerful, proprietary technology platform, EquiFi's Equity Funding Instrument (EFI^™) matches consumer housing needs with investor interests. For more information, please visit www.EquiFi.com.

About The Palisades Group
As an alternative asset manager in the global residential credit markets having managed in excess of $17.4 billion of loans and real estate since 2012, the Firm invests in, and actively manages, real estate-backed loans throughout the business cycle. Palisades currently manages a diverse portfolio of residential loans and real estate with notional balance of approximately $5.1 billion with underlying properties located in the United States, Europe and Latin America, please visit www.palisades.us.com.

SOURCE EquiFi Corporation, PBC / Walt & Company