Bain Capital and Group 1001’s Delaware Life Insurance Co. have led a $245 million capital fund commitment in Hometap, a provider of a smart, new loan alternative for home equity without taking on debt.

The new fund is Hometap’s third institutional investment vehicle and will become its largest to date. Hometap enables homeowners to receive debt-free cash in exchange for a share of the home’s future value. The fund is designed to bring the firm’s investment product to an expanded customer base and give investors the opportunity to diversify their portfolios into residential real estate asset classes.

“We believe Hometap provides homeowners with a compelling, debt-free financing alternative and investors with a diversified, attractive relative value way to make a long-term investment in U.S. residential assets,” said David DesPrez, director at Bain Capital. “We are proud to partner with the Hometap team as they bring value to more homeowners across the country.”

“With a growing number of homeowners seeking creative ways to access their home equity, Hometap offers an attractive, debt-free solution that we are proud to support,” said Justin Ostroff, senior managing director of G1001 Innovation Group. “This is a compelling new asset class that fits within Group 1001’s mission to offer useful and intuitive financial products accessible to everyone, and we recognize the significant opportunity for Hometap to continue to institutionalize this market.”