Watercress Financial has entered into a $550 million agreement with investment firm 26North Partners LP to fund more home improvement loans across the United States.

Under the agreement, 26North will purchase loans generated through Watercress Financial’s network of contractors. The added funding is intended to help meet growing demand for financing options that allow homeowners to pay for projects over time.

Watercress Financial said the partnership will help expand its financing programs and give contractors more reliable access to payment options for their customers.

“Access to this level of capital is an important step for our business and allows us to better support contractors and homeowners,” said Robert Young, President and Chief Credit Officer of Watercress Financial.

Founded in 2022, 26North manages more than $35 billion in assets across private equity, private credit, insurance and reinsurance. The transaction was structured as an institutional credit facility by the firm’s Investment Grade Alpha team. Financial terms of the loans and pricing details were not disclosed.

The agreement builds on Watercress Financial’s efforts to broaden its funding sources. Earlier, the company partnered with VersaBank on a receivable purchase program to help fund a portion of its loan originations in the U.S.

Watercress Financial provides financing solutions for home improvement projects through contractors nationwide, offering payment plans intended to help homeowners manage project costs.