Unison gives homeowners cash today in return for a share of the home's future price gains via equity sharing contracts. There are no monthly payments. Instead, the homeowner settles up in a single payment when they sell the property or refinance.
These deals tend to appeal to owners who cannot qualify for a standard home equity loan, or who want to avoid adding ongoing interest charges on mortgages, credit cards, or auto loans. Critics say the arrangements can be hard to parse and, in some cases, very pricey.
People with knowledge of the talks say Unison has picked banks to guide a potential IPO, with UBS Group AG and Cantor Fitzgerald among those selected. The same people said Unison is seeking up to $500 million, and that trading could begin as soon as November. They cautioned that deliberations are continuing and specifics, including which banks are on the deal, could shift.
Representatives for UBS and Cantor Fitzgerald would not provide remarks. Unison also had no immediate comment.
Hiring banks is the first concrete step toward a listing. Market Briefs covers the IPO pipeline free every weekday.
IPO windows have been uneven lately, and several companies have hit pause on offerings. Even so, Unison is prepping to test the waters while elevated mortgage rates are lifting interest in a model it pioneered roughly two decades ago. High borrowing costs have made it tougher to sell homes or tap equity through traditional home equity loans. At the same time, US households hold a record $35.8 trillion of home equity, according to the Federal Reserve.
SFR Analytics reports that, from Jan. 1 to Sept. 30 of this year, Unison and its peers originated over $2.6 billion - roughly 30% higher than the same period last year. Competitors include Point, Hometap, and Splitero. In 2024, Unison entered into a collaboration with Carlyle Group Inc., under which Carlyle would purchase up to $300 million of equity-sharing home loans.
Thomas Sponholtz established Unison in the early 2000s with the aim of providing institutional investors access to US home price appreciation. Interest remained muted until the period following the US foreclosure crisis, at which point competitors began to emerge.
If Unison goes public and raises up to $500 million, it would be a fresh sign that investors are circling alternative ways to unlock housing wealth, even with IPO conditions shifting week to week. For everyday homeowners, the bigger story is the sheer amount of equity tied up in houses and the growing menu of ways to access it, each with very different tradeoffs on cost and complexity.
Home equity products are drawing serious institutional interest. Join Market Briefs free and follow it.
