Kiavi closes $350 million revolving securitization of residential transition loans

Tech-enabled lender's largest deal since November 2021 was upsized due to oversubscription from significant investor interest 

SAN FRANCISCO, Feb. 26, 2024 /PRNewswire/ -- Kiavi, a leading provider of capital to residential real estate investors, today announced it closed an approximately $350 million unrated securitization of residential transition loans ("RTLs"). This is Kiavi's 16th transaction under its LHOME shelf, bringing the company's total issuance to $4 billion+ in offered notes since it began its securitization program in 2019.

With significant interest from both new and repeat institutional investors, the deal was upsized and oversubscribed in all classes of bonds, resulting in Kiavi's largest securitization since November 2021. The offered notes are in three classes, A1, A2, and M, all of which were sold. As with prior transactions, the deal includes a two-year revolving period, during which principal payoffs can be reinvested to purchase additional newly originated loans.

"We're thrilled to apply this capital to help more and more real estate investors scale their businesses while creating move-in ready homes for millions of Americans," said Arvind Mohan, CEO of Kiavi. "Kiavi's platform and unique use of AI, data, and machine-learning models are significant contributors to our consistent track record of performance, which has helped us build and grow reliable institutional demand for Kiavi's RTL assets over the past five years. We aim to build upon our technology and AI capabilities to further serve our customers and drive our performance as we continue to grow," he added.

This deal comes just a few weeks after Kiavi closed a $300M securitization and reported record fix-and-flip loan origination volume in 2023, signaling positive momentum for the company in 2024.

Kiavi is one of the top lenders to real estate investors who are looking to buy, renovate, and sell or rent a home. The company's technology platform, data-driven approach, and leading capital execution allow Kiavi to provide real estate investors with a transparent online experience, competitive pricing, and reliable capital to scale their businesses.

Nomura Securities International, Inc. (Nomura) was the sole structuring agent of the deal. Nomura, Barclays Capital, Inc. and Performance Trust Capital Partners, LLC were joint bookrunners and co-lead managers on the transaction.

About Kiavi
With $18 billion in funded loans, Kiavi is one of the nation's largest private lenders to residential real estate investors ("REIs"). Kiavi harnesses the power of data & technology to offer REIs a simpler, more reliable, and faster way to access the capital they need to scale their businesses. Formerly known as LendingHome, Kiavi is committed to helping its customers revitalize the approximately $25 trillion of aged U.S. housing stock to provide move-in ready homes and rental housing for millions of Americans across the country. For more information, visit www.kiavi.com. 

SOURCE Kiavi Inc.