Kiavi closes $275 million revolving securitization of residential transition loans
Transaction demonstrates investor confidence in Kiavi and its track record of generating meaningful returns in the RTL asset class.
SAN FRANCISCO – Oct. 16, 2023 – Kiavi, a leading provider of financing to residential real estate investors, today announced it closed an approximately $275 million securitization of unrated residential transition loans (“RTLs”). This is the third securitization Kiavi has closed in 2023 and the company’s 14th transaction under its LHOME shelf, bringing the company’s total issuance to more than $3.2 billion in offered notes since it began its securitization program in 2019.
Due to oversubscription, the deal was upsized to $275 million. 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.
“In today’s credit-constrained environment, we’re particularly proud to close our third transaction of the year,” said Arvind Mohan, CEO of Kiavi. “Kiavi’s leadership position in the private lending market and consistent track record of performance has created strong investor interest in Kiavi’s RTL assets despite the challenging macroeconomic climate,” he added.
The deal comes as Kiavi celebrates its 10-year anniversary. Over the past decade, Kiavi has harnessed the power of data and technology to originate 67,000 loans totaling more than $16.5 billion to 17,000+ residential real estate investors. In the first three quarters of 2023, Kiavi funded 11,200 loans totaling more than $3.2 billion.
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.
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 $16.5 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 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.