Equity release market booms: Heimkapital closes successfully its Series A financing round and continues to grow dynamically

  • Vereinigte Volksbank eG, Amavi Capital and Ilavska Vuillermoz Capital (IVC) newly participate in the financing round
  • Goal of newly acquired 250 million euros in assets under management (AuM) for 2022 in sight
  • Expansion of technology platform and investments in team planned

Munich, 20 September 2022. Heimkapital, one of the leading real estate equity release platforms from Munich, has successfully closed its Series A financing round. A low double-digit million amount flows newly into the company through a capital increase. New on board are Vereinigte Volksbank eG, Amavi Capital and Ilavska Vuillermoz Capital. The existing investors around yabeo Capital, Family Office Unger and several business angels (among them Frank Strauss, former CEO of Postbank) support the round. The fresh capital will be used to further expand the team and the technology platform, as well as to invest in brand, marketing, and business development. Heimkapital is on a dynamic growth path 28 months after going live: the company, which has its sights set on profitability, will reach its target of newly acquired €250 million assets under management for 2022 well before the end of the year.

Demand for real estate equity release continues to grow strongly in Germany as an alternative to traditional financing instruments. On the one hand, the offer is becoming increasingly well-known as a supplement to existing financing options. On the other hand, there is a greater desire for financial security, especially in economically challenging times. The equity release of real estate with Heimkapital, in which up to 50 percent of one’s own property is sold in return for an immediate payout, is an ideal solution in many cases. For the company’s further growth course, the Series A growth financing has now laid the foundation in the form of industry expertise and capital. “We are very proud to have gained strong new investors from the credit, finance and real estate industries with Vereinigte Volksbank eG, Amavi Capital as well as IVC. All three strengthen our shareholder base with a deep understanding of the market and are the perfect complement to our existing investors,” explains Julia Schabert, founder and CEO of Heimkapital, which she founded in 2019 together with Dimitrij Miller and Benedikt Wenninger.

Expanding the technology platform for the best possible total package

Heimkapital’s focus in the coming months is now on offering the best possible total package on the market for its target client group, also by using its technology platform. “Heimkapital has established itself as one of the leading providers on the market. We were convinced by the team and the business model right from the start. As real estate investors, Heimkapital always looks at long-term development and is already on course for profitability. We are therefore very pleased to be able to help shape the company’s future path,” says Matthias Sohler, founder and managing director of yabeo Capital.

The real estate equity release closes the liquidity gap that often arises between the end of working life and the beginning of retirement: a FORSA survey (November 2020) by Heimkapital, for example, showed that more than 40 percent of real estate owner:ins retire with less than 20,000 euros in savings.

“We continue to see great market potential in Germany. This is because the partial sale combines three key advantages: 1. owners can release the liquidity they have tied up in the property. 2. owners can remain in their familiar surroundings and 3. owners remain more flexible about the future and have all options in their own hands - for example, a buyback is also conceivable. In a world that is changing ever faster, this flexibility is actually the most important advantage for the target group,” says Ralf Magerkurth, Chairman of the Board at Vereinigte Volksbank Raiffeisenbank eG.

Heimkapital: Dynamic development since market launch

Since the market launch in spring 2020, Heimkapital has already partially purchased several hundred properties and now employs more than fifty people. In the coming months, the team is to be expanded specifically in the areas of sales, marketing, tech and business development.

“Partial property sales create opportunities for financial self-determination for property owners. Heimkapital has proven itself as a trusted partner for partial sellers and we clearly see the need in the market for a third alternative besides a bank loan and the overall sale of the property. As a venture capitalist specializing in proptechs, we have been following Heimkapital’s path for some time and are very excited to continue the journey together,” said Frédéric Van den Weghe, Managing Partner at AMAVI Capital.

Profiting from the development of the real estate market through partial sales

Heimkapital attaches great importance to its purchasing strategy: the company only acquires partial ownership of real estate where sellers can also expect a significant increase in value. This is one of the reasons why Heimkapital’s technology platform is used, but also to offer the most attractive overall package for owners at all times, which goes far beyond the pure real estate transaction.

“We were particularly impressed by how Heimkapital tries to optimize the owner’s entire real estate ecosystem. This is currently demonstrated, for example, by the fact that customers are given financial support for energy-efficient renovation measures. After all, both parties have the same interest in maintaining value. But this idea of an ecosystem can be taken much further: Partnerships with insurance companies, craftsmen, etc. are conceivable in order to offer owners the best possible conditions for services around the house,” says Laurent Hengesch, Founding Partner at Ilavska Vuillermoz Capital.

About Heimkapital:

Heimkapital is a real estate platform with innovative financial products from Munich. The company was founded in 2019 by Dimitrij Miller, Julia Schabert and Benedikt Wenninger. Heimkapital’s market entry product is the real estate equity release. This innovative form of real estate sale enables Heimkapital customers to sell part of their property in exchange for an immediate payout. Thus so far bound capital can be released and creates free means for real estate owners. In the case of a real estate equity release, the previous owner remains the main owner of the property, while Heimkapital becomes a silent partner. More information at: www.heimkapital.de