Kiavi, a prominent provider of capital to residential real estate investors, has successfully concluded an approximately $350 million unrated securitization of residential transition loans (“RTLs”). This marks Kiavi’s 16th transaction under its LHOME shelf, bringing the company’s total issuance to over $4 billion in offered notes since initiating its securitization program in 2019.
Amid substantial interest from both new and repeat institutional investors, the deal witnessed upsizing and oversubscription across all classes of bonds, resulting in Kiavi’s most substantial securitization since November 2021. The offered notes comprise three classes: A1, A2, and M, all of which have been fully sold. Continuing the precedent set by previous transactions, the deal encompasses a two-year revolving period, enabling reinvestment of principal payoffs to acquire additional newly originated loans.
Arvind Mohan, CEO of Kiavi, expressed enthusiasm about deploying this capital to support the expansion efforts of real estate investors and facilitate the creation of move-in ready homes for millions of Americans. Mohan attributed Kiavi’s consistent performance record to its platform’s utilization and unique integration of AI, data, and machine-learning models, which have fostered reliable institutional demand for Kiavi’s RTL assets over the past half-decade. He further emphasized Kiavi’s commitment to leveraging technology and AI capabilities to enhance customer service and drive performance amidst sustained growth.
This transaction follows closely on the heels of Kiavi’s recent $300 million securitization closure and record fix-and-flip loan origination volume reported in 2023, indicating positive momentum for the company in 2024.
Kiavi stands as a premier lender to real estate investors engaged in purchasing, renovating, and selling or renting homes. Leveraging its technology platform, data-driven approach, and proficient capital execution, Kiavi offers real estate investors a transparent online experience, competitive pricing, and dependable capital to fuel business scalability.
Nomura Securities International, Inc. served as the sole structuring agent for the deal, with Nomura, Barclays Capital, Inc., and Performance Trust Capital Partners, LLC acting as joint bookrunners and co-lead managers on the transaction.
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By Proptechbuzz
By Ravi Kumar
