Watercress Financial Announces $550 Million Forward Flow Partnership with 26North to Expand Home Improvement Financing and Flexible Payment Options

Business Wire

Collaboration supports scalable payment plans and flexible financing options for contractors and homeowners across the U.S.

WEST DES MOINES, Iowa--(BUSINESS WIRE)--
Watercress Financial, a leading provider of home improvement financing solutions, today announced a $550 million forward flow partnership with multi-asset-class investment firm 26North Partners LP (“26North”), which will purchase loans originated through Watercress Financial's national contractor network.

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As demand for home improvement payment plans grows, this collaboration enables Watercress Financial to increase funding capacity and expand flexible payment options for contractors and homeowners across the United States.

Since its founding in 2022, 26North has built an integrated platform with over $35 billion in assets under management across private equity, private credit, insurance and reinsurance strategies. 26North's Investment Grade Alpha (“IGA”) team originated the transaction, structuring a rated, institutional-grade credit facility. IGA gives high-quality, middle-market companies an alternative to traditional bank financing and delivers proprietary investment-grade assets that 26North's insurance clients seek.

“The 26North partnership represents an important step in advancing Watercress Financial’s capital strategy. We value their creativity and long-term oriented approach. 26North’s commitment strengthens our capital strategy by expanding access to scalable funding, accelerating execution on strategic priorities, and reinforcing a resilient foundation for sustained, value-driven growth,” said Brandon Nelson, SVP, Capital Markets at Watercress Financial.

“Accessing institutional capital on these terms is a meaningful milestone for Watercress Financial. Our work with 26North provides independent validation of our credit and underwriting process. This enhances transparency, builds trust with investors and partners, and helps us access the capital markets more efficiently, resulting in stronger product terms for contractors. We value 26North’s confidence in our disciplined approach and look forward to scaling the business together,” said Robert Young, President and Chief Credit Officer of Watercress Financial.

“Home improvement financing serves a large addressable market with consistent consumer demand, which makes it a sector where disciplined underwriting can generate durable, predictable cash flows. Watercress Financial has demonstrated that rigor through consistent origination volume and a contractor network operating at a national scale,” said 26North Partner James Hwang. “This transaction reflects our conviction in the asset class and commitment to the partners who have the infrastructure to grow alongside us.”

This partnership reinforces Watercress Financial’s position as a trusted provider of home improvement financing and contractor payment solutions in the U.S. By expanding its capital relationships, Watercress Financial provides contractors with reliable access to financing and payment plans while helping homeowners move forward with projects through manageable, flexible payment options.

About Watercress Financial

Watercress Financial is a leading provider of home improvement financing solutions, offering flexible payment options designed to help contractors close more deals and homeowners complete important projects with confidence. With a focus on speed, simplicity, and service, Watercress Financial supports a nationwide network of contractor partners.

About 26North

26North Partners LP is an integrated, multi-asset-class investment platform founded by Josh Harris in 2022. The firm manages over $35 billion across private equity, private credit, insurance and reinsurance strategies, bringing flexible capital solutions and distinct capabilities to the middle market.

26North Private Equity deploys capital across buyouts, carve-outs and structured equity. 26North Private Credit primarily invests in direct lending, private asset-backed finance and commercial real estate lending.

The firm’s insurance business serves clients with disciplined asset-liability management and access to proprietary, privately originated assets.

The 26North team brings decades of experience managing third-party capital to help clients achieve their financial goals while making a lasting impact on the communities in which they operate.

For more information, visit www.26n.com.