Kiavi Closes $158M Revolving Securitization of Residential Transition Loans

Kiavi, a provider of financing to real estate investors (REIs), announced it closed an approximately $158 million, 12-month-term revolving securitization of unrated residential transition loans (RTL).

This is the eleventh broadly syndicated securitization transaction by Kiavi “under its LHOME shelf since it began its securitization program in 2019, and brings Kiavi’s total issuance to $2.75 billion.”

Arvind Mohan, Chief Operating Officer, Kiavi, said:

“Closing this securitization is particularly significant given today’s challenging macroeconomic climate. Rising yields have created an opportunity to introduce the RTL asset class to new securitization investors that were previously priced out of the market. Securitizations like these not only firmly demonstrate Kiavi’s leadership position in our industry, but also continued confidence in our ability to generate meaningful risk-adjusted returns for investors in the RTL asset class.”

The deal provides Kiavi “with additional capital to invest in opportunities to grow its funding capacity.”

Kiavi funded “a record $4.4 billion in loan volume to more than 5,600 customers in 2022, and has funded more than $12.3 billion in loan volume since its inception in 2013.” Kiavi also recently “became the first and only non-QM lender to real estate investors to fund over 50,000 bridge and fix-and-flip loans.”

Mohan added:

“We at Kiavi are entering 2023 with optimism, given our strong company performance and differentiation through our application of technology and data analytics to drive customer loyalty and credit outcomes. Last year was a record year for Kiavi, in terms of both loan units and volume funded. We are carrying that momentum into 2023, and are looking forward to further growing our position as a leading financing partner to real estate investors across the nation,” he concluded.

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 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.”

Nomura Securities International Inc. was “the structuring agent of the deal. Nomura and Barclays Capital Inc. were joint bookrunners and co-lead managers on the transaction.”

With more than $12.3B in funded loans, Kiavi claims it 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.”

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