Kiavi Secures $300M in Oversubscribed Securitization Deal: A Major Win for Tech-Enabled Lending
Kiavi, a prominent tech-enabled lender specializing in residential real estate investment, has successfully raised $300 million through a highly rated securitization of residential transition loans (RTLs). This significant achievement marks the company’s 21st transaction under its LHOME shelf, bringing its total securitization offerings to an impressive $5.8 billion since the program’s inception in 2019.
Investor Interest and Transaction Details
The recent securitization attracted substantial investor interest, with notes being oversubscribed by more than five times the initial offering. The notes were divided into four distinct classes—A1, A2, M1, and M2—and were entirely sold. Notably, several first-time institutional investors participated in this transaction.
- Two-Year Revolving Period: The deal includes a two-year revolving period, enabling principal repayments to be reinvested into newly originated loans, thus enhancing Kiavi’s funding capacity.
- Credit Rating: Morningstar DBRS provided a credit rating for the transaction.
- Sole Structuring Agent: Barclays acted as the sole structuring agent, while Nomura Securities International and Performance Trust Capital Partners served as joint bookrunners and co-lead managers.
Kiavi’s Growth and Future Prospects
Following a record year in 2024, during which Kiavi originated $6.5 billion in loans—a remarkable 46% increase year-over-year—the company continues to thrive despite a sluggish housing market. Kiavi also expanded its active customer base by 30%, now serving over 5,500 clients, and successfully completed five RTL securitizations worth nearly $2 billion. Additionally, the firm introduced a new construction financing product to broaden its service offerings.
Expanding Operations
As Kiavi enters 2025, the company is poised for further growth, having recently expanded its operations to 13 new states, bringing its total coverage to 45 states and Washington, D.C.
CEO Insights on Kiavi’s Success
Kiavi’s CEO, Arvind Mohan, emphasized the company’s commitment to delivering fast, reliable, and transparent capital for real estate investors. He stated, “This transaction adds over $1 billion of funding capacity throughout its lifetime, enhancing Kiavi’s ability to support more real estate investors across the nation.”
Mohan further highlighted the company’s data-driven approach and technology-led strategy, which contribute to its consistent performance and risk-adjusted returns. He concluded, “This transaction further expands our funding capacity, allowing us to capitalize on our strong momentum.”
For more information on Kiavi’s innovative lending solutions, visit their official website.
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