Palisades Closes Multi-Originator Home Equity Investment Securitization
Palisades Group ("Palisades"), a wholly-owned subsidiary of Chimera Investment Corporation (NYSE:CIM) and an alternative asset manager in the residential credit and real estate markets, today announced that on June 30, 2025, Solve Funding LLC had sponsored SOLVE 2025-HEC1, a $112.1 million securitization backed by home equity investment assets (HEI). This transaction marks a milestone in the evolution of the HEI sector as the securitization featured collateral aggregated from multiple originators. Solve Funding LLC is a wholly-owned indirect subsidiary of investment fund vehicles that are managed by Palisades Group. Palisades Group is the reporting manager and administrator for the securitization. The securitization is rated by Morningstar DBRS.
HEIs represent a rapidly growing alternative to traditional debt-based financing for homeowners. The asset class has gained increasing relevance amid record levels of U.S. homeowner equity and rising interest rates that have made traditional cash-out refinances and second liens less economic and affordable for average consumers.
"This securitization is an exciting next step in the maturation of the HEI market," said Jack Macdowell, Chief Investment Officer of Palisades. "Millions of U.S. homeowners are sitting on historically high levels of untapped equity, yet many face limited options for accessing that wealth without taking on new debt. HEIs offer a creative, consumer-aligned solution, providing liquidity without increasing monthly obligations. This transaction helps bring much-needed capital efficiency and scalability to the space."
The SOLVE 2025-HEC1 transaction reflects the successful unlocking of institutional capital for alternative residential credit products while also promoting financial flexibility for homeowners.
"Since the introduction of a formal rating methodology by Morningstar DBRS in July of 2023, the market has made meaningful strides — culminating in this first rated, multi-originator securitization," said Nirvan Ghosh, Senior Portfolio Manager. "We believe it's an important milestone for the asset class. As investors gain familiarity with the underlying credit, structures like this will be critical for improving liquidity, transparency, and ultimately, the cost of capital across the ecosystem."
Nomura Securities International, Inc. acted as sole structuring lead and joint bookrunner. Texas Capital Securities served as joint bookrunner, and Cantor Fitzgerald & Co. acted as co-manager.
About Palisades Group
Palisades Group, a wholly owned subsidiary of Chimera Investment Corporation (NYSE:CIM), is an alternative asset manager in the residential credit markets having managed more than $45 billion of loans, real estate, and fixed income securities since its 2012 inception. It employs a top-down asset allocation approach across residential whole loans, real estate, opportunistic credit, and fixed income markets. The Palisades Group provides clients with a control-oriented management style anchored in asset level risk management, loss mitigation, and value-add strategies. Palisades invests capital on behalf of a diverse group of institutional investors, including insurance companies, university endowments, foundations, health care systems, pensions, fund of funds, family offices, private equity and other asset management firms.
For more information, please visit www.palisades-group.com.
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Matthew Mustich
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