Kiavi, a tech-enabled lender to residential real estate investors, announced it closed a $400 million rated securitization of residential transition loans (RTLs).
While this is Kiavi’s first rated securitization, it is “the 19th transaction under its LHOME shelf.”
In total, Kiavi has issued “more than $5.1 billion in offered notes since it began its securitization program in 2019 and about $1.4 billion in 2024 alone.”
Due to significant interest from a broad set of institutional investors, including several first-time investors, the transaction “was upsized by $100 million and oversubscribed by multiple times.”
The offered notes are in “four classes, A1, A2, M1, and M2, all of which were sold.”
Consistent with prior LHOME transactions, the deal includes “a two-year revolving period, during which principal payoffs can be reinvested to purchase additional newly originated loans.”
Arvind Mohan, CEO of Kiavi, said:
“We’re thrilled to close our first rated securitization, enabling a much wider set of institutional investors to invest in Kiavi’s RTL program. This deal, along with our previous securitizations, demonstrates our strong track record in the RTL sector. Transactions like this, in addition to our focus on innovation, enable us to continue helping real estate investors scale their businesses with a trusted, reliable capital partner – and ultimately provide more move-in ready homes and rental housing for millions of Americans across the country,” he added.
Morningstar DBRS provided a credit rating on the deal.
Nomura Securities International, Inc. was the sole structuring agent.
Nomura, Barclays Capital, Inc. and Performance Trust Capital Partners, LLC were “joint bookrunners and co-lead managers on the transaction.”
Kiavi is a lender “to residential real estate investors in the United States.”
The company’s technology platform, data-driven approach, and capital execution allow Kiavi to provide real estate investors “with a transparent online experience, competitive pricing, and reliable capital to scale their businesses.”
With more than $21 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.”
