Kiavi – a leading capital provider to residential real estate investors – 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 its securitization program began in 2019.
Through 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. And 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.
This deal comes just a few weeks after Kiavi closed a $300 million securitization and reported record fix-and-flip loan origination volume in 2023, signaling positive momentum for the company in 2024. And 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 enable Kiavi to provide real estate investors with a transparent online experience, competitive pricing, and reliable capital to scale their businesses.
Nomura Securities International was the sole structuring agent of the deal. Nomura, Barclays Capital, and Performance Trust Capital Partners were joint bookrunners and co-lead managers on the transaction.
KEY QUOTES:
“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. 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.”
– Arvind Mohan, CEO of Kiavi
