Kiavi closes $209 million revolving securitization of residential transition loans
The lender’s 12th transaction of its kind underscores ongoing investor confidence in the company and RTL asset class performance despite economic uncertainty
SAN FRANCISCO – February 27, 2023 – Kiavi, a leading provider of financing to real estate investors, today announced it closed an approximately $209 million, 24-month-term revolving securitization of unrated residential transition loans (“RTLs”). This is Kiavi’s 12th RTL transaction under its LHOME shelf since it began its securitization program in 2019. This is Kiavi’s second securitization in the last two months, bringing the company’s total issuance to $2.96 billion in offered notes.
The $220 million total deal size includes $209 million in offered notes 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 in purchasing additional newly originated loans.
“This transaction is a particularly exciting deal. In this turbulent market, it sends a clear message that Kiavi is a stable, proven, and reliable partner. This securitization underscores the confidence our investors have in Kiavi, our business model, and our future as a leading lender to real estate investors across the nation,” said Arvind Mohan, Chief Executive Officer, Kiavi. “The fact that we are continuing to close securitizations and add new investors despite the challenging macroeconomic environment is a testament to Kiavi’s proven ability to provide meaningful returns to institutional investors,” he concluded.
Last month, Kiavi announced the closing of an approximately $158 million, 12-month-term revolving securitization of unrated RTLs. In 2022, Kiavi funded a record $4.4 billion in loan volume to more than 5,600 customers, and became the first non-QM lender to real estate investors to fund over 50,000 bridge and fix-and-flip loans.
Kiavi has rapidly become one of the top destinations for real estate investors that are looking to buy, renovate, and sell or rent a home. The company's leading capital markets execution paired with its technology-enabled platform allows Kiavi to provide real estate investors with competitive pricing and reliable capital to scale their businesses.
Barclays Capital, Inc. (“Barclays”) was the sole structuring agent of the deal. Barclays, Nomura Securities International, Inc. and Performance Trust Capital Partners, LLC were joint bookrunners and co-lead managers on the transaction.
With more than $13 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 worth 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.