Kiavi, a tech-enabled lender specializing in residential real estate investments, recently announced the successful closure of a $400m rated securitization.
This significant transaction marks Kiavi’s 20th under its LHOME shelf and its fifth in 2024, emphasizing its growth and consistent market presence since its inaugural securitization in 2019.
The securitization was upsized and oversubscribed due to substantial interest from a broad array of institutional investors, including several first-time participants. The offering was structured into four classes: A1, A2, M1, and M2, all of which were fully sold. This transaction continues Kiavi’s tradition of a two-year revolving period that allows principal payoffs to be reinvested in additional newly originated loans.
Kiavi’s primary function is to offer tech-driven solutions to residential real estate investors across the United States. Its platform and approach are built on a foundation of extensive data analysis and cutting-edge technology, which enable the company to provide competitive and transparent financing options.
The fresh capital from this securitization will be instrumental in further developing Kiavi’s services, particularly in scaling up their new construction financing product and continuing the expansion of their comprehensive product suite.
In 2024, Kiavi has maintained a record-breaking trajectory, having originated nearly 15,000 loans amounting to $4.6bn, marking a 44.5% increase compared to the previous year. This growth is supported by their recent initiatives, including their first rated securitization of RTLs.
CEO of Kiavi, Arvind Mohan, said, “We are ecstatic to close our 20th securitization in five years, and our fifth in 2024. This milestone is a testament to Kiavi’s strong track record of performance, which has helped us build and grow reliable institutional demand for Kiavi’s RTL assets since 2019.
“With the advent of rated securitizations, we’re seeing demand from a wider set of institutional investors, including a number of first-time investors. We look forward to putting this capital to work by helping our customers quickly and easily unlock the capital they need to scale their businesses.”
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