Kiavi closes $400 million rated securitization of residential transition loans, its 20th transaction in five years
Tech-enabled lender’s milestone deal is its second rated securitization, which was upsized and oversubscribed due to significant investor interest
SAN FRANCISCO – Oct. 16, 2024 – Kiavi, a leading tech-enabled lender to residential real estate investors, today announced it closed a $400 million rated securitization of residential transition loans (“RTLs”). This is Kiavi’s 20th transaction under its LHOME shelf and its fifth of 2024, as well as its second rated securitization. In total, Kiavi has issued more than $5.5 billion in offered notes since it began its securitization program in 2019 and about $1.9 billion in 2024 alone.
Due to significant interest from a broad set of institutional investors, including several first-time investors, the transaction was upsized and oversubscribed. 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.
“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,” said Arvind Mohan, CEO of Kiavi. “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,” he concluded.
Morningstar DBRS provided a credit rating on the deal. Nomura Securities International, Inc. (“Nomura”) 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.
So far, 2024 has been a banner year for Kiavi. Through the third quarter, Kiavi originated nearly 15,000 loans totaling $4.6 billion, a 44.5% increase over the same period last year. Supporting this record-breaking growth, the company recently announced its first rated securitization of RTLs and expanded its product suite by launching a new construction financing product.
Kiavi is a top lender to residential real estate investors in the United States. 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.
About Kiavi
With more than $22 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. For more information, visit www.kiavi.com.
Media contact
Press@kiavi.com