Prudential Financial Inc.’s asset-management arm PGIM will purchase up to $3 billion of home improvement loans from lender GreenSky under a three-year arrangement, handing the asset manager a slice of the booming market for home upgrades and repairs.

The deal reflects growing investor appetite for consumer-backed lending assets tied to rising home equity and renovation demand. PGIM gains access to GreenSky’s point-of-sale financing platform used by contractors and homeowners across the U.S.

GreenSky, founded in 2006, originates loans for home improvement projects, typically ranging from $5,000 to $55,000, and has grown into one of the largest private-label financiers in the sector. The company went public in 2018 and has since expanded its partnerships with major retailers and contractors.

The transaction underscores continued momentum in home improvement spending, supported by elevated property values and low unemployment. For PGIM, the move diversifies its fixed-income portfolio with high-quality, asset-backed securities.