Kiavi closed 2023 with a $300 million revolving securitization of residential transition loans amid record origination volume
Tech-enabled lender announced it funded a record $4 billion in residential transition loans last year and closed a $300 million securitization that was upsized due to significant investor interest
SAN FRANCISCO – Jan. 23, 2024 – Kiavi, a leading provider of capital to residential real estate investors, today announced it funded a record $4 billion in fix-and-flip loans in 2023 and closed an approximately $300 million unrated securitization of residential transition loans (“RTLs”). This is Kiavi’s 15th transaction under its LHOME shelf, bringing the company’s total issuance to more than $3.5 billion in offered notes since it began its securitization program in 2019.
The offered notes saw significant interest from institutional investors, resulting in the deal being upsized. The offered notes are in three classes, A1, A2, and M, all of which were sold. The deal includes a two-year revolving period, during which principal payoffs can be reinvested to purchase additional newly originated loans.
Despite the challenging market and flipped home transactions being down about 30% year-over-year (per John Burns Research & Consulting), 2023 was a banner year for Kiavi. The company harnessed the power of data and technology to fund a record $4 billion in fix-and-flip/bridge loans via more than 13,000 loans to 5,800 real estate investors, which is a 7% year-over-year volume increase. In 2024, Kiavi plans to continue to establish itself as the preeminent lender for real estate investors via scaling its product suite with the addition of new construction financing and furthering its technology and AI capabilities to create more certainty to customers as they access capital to scale their businesses.
“We’re excited to start the year by announcing the latest deal to fuel our continued growth and capital flow to our customers,” said Arvind Mohan, CEO of Kiavi. “This is Kiavi’s largest securitization since November 2021, signaling positive momentum as we head into the new year. Our consistent track record of performance has allowed us to build and grow reliable institutional demand for Kiavi’s RTL assets, which enables us to support more customers than ever with dependable, competitively priced capital - even through a challenging macroeconomic cycle,” he added.
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.
With more than $17.5 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.