Kiavi, a prominent capital provider for residential real estate investors, recently finalized an approximately $350 million unrated securitization of residential transition loans (“RTLs”). This marks Kiavi’s 16th successful transaction under its LHOME shelf, bringing the company’s total issuance to over $4 billion in offered notes since launching its securitization program in 2019.
The transaction garnered substantial interest from both new and repeat institutional investors, resulting in an upsized and oversubscribed deal across all classes of bonds. Notably, this represents Kiavi’s largest securitization since November 2021. The offered notes, categorized as A1, A2, and M, were all successfully sold. Similar to previous transactions, the deal encompasses a two-year revolving period, allowing reinvestment of principal payoffs into newly originated loans.
CEO of Kiavi, Arvind Mohan, commented, “We’re pleased to deploy this capital to support the expansion of real estate investors’ businesses, facilitating the creation of move-in ready homes for millions of Americans. Kiavi’s platform, incorporating AI, data, and machine-learning models, has been instrumental in maintaining our consistent performance record, fostering robust institutional demand for Kiavi’s RTL assets over the past five years. Our commitment is to enhance our technological and AI capabilities to better serve our customers and drive performance as we continue to grow.”
This development follows Kiavi’s recent closure of a $300 million securitization and the report of record fix-and-flip loan origination volume in 2023, signaling positive momentum for the company in 2024.
Kiavi, a leading lender for real estate investors engaged in purchasing, renovating, and selling or renting homes, distinguishes itself through its technology platform, data-driven approach, and efficient capital execution. These factors collectively provide real estate investors with a transparent online experience, competitive pricing, and reliable capital for scaling their businesses.
Nomura Securities International, Inc. acted as the sole structuring agent for the deal, with Barclays Capital, Inc. and Performance Trust Capital Partners, LLC serving as joint bookrunners and co-lead managers.
About Kiavi:
With $18 billion in funded loans, Kiavi stands as one of the nation’s largest private lenders to residential real estate investors (“REIs”). Leveraging data and technology, Kiavi simplifies and accelerates the process for REIs to access the capital needed to scale their businesses. Formerly known as LendingHome, Kiavi is committed to revitalizing the approximately $25 trillion of aged U.S. housing stock, providing move-in ready homes and rental housing for millions of Americans.
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By Proptechbuzz
By Ravi Kumar
