This startup is raising money to invest in home equity. Here’s how it works.

Boston-based startup Hometap Equity Partners LLC has raised a $245 million fund with capital commitments from Bain Capital and Group 1001’s Delaware Life Insurance Co. to acquire minority equity stakes in private homes, MarketWatch has learned.

The fund marks the latest and largest such vehicle for the company as it builds up its practice for institutional investors to gain access to trillions in equity while providing homeowners a debt-free way to raise capital, said Hometap CEO Jeffrey Glass.

“There are millions of Americans who are house rich and cash poor and who have a huge percentage of their wealth trapped in their home,” Glass said. “If you want to access the capital, you either sell outright or further borrow against the home, which increases your monthly payments.”

This article originally appeared on MarketWatch. Read the article here.