Kiavi Secures $300M in Residential Transition Loan Securitization

Kiavi, a private lender, closes a $300 million unrated securitization of residential transition loans, marking its 17th securitization since 2019. This deal brings Kiavi's total issuance to $4.3 billion, demonstrating its growth and appeal to institutional investors.

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Bijay Laxmi
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Kiavi Secures $300M in Residential Transition Loan Securitization

Kiavi Secures $300M in Residential Transition Loan Securitization

Kiavi, a prominent private lender specializing in residential real estate investment, has successfully closed a $300 million unrated securitization of residential transition loans (RTLs). This landmark transaction marks Kiavi's 17th securitization since the launch of its program in 2019 and brings the company's total issuance to an impressive $4.3 billion.

Why this matters: This deal demonstrates the growing appetite of institutional investors for alternative investment opportunities in the real estate sector, which can have a significant impact on the overall economy. As private lenders like Kiavi continue to attract capital, they can provide more financing options for real estate investors, potentially stimulating housing market activity and economic growth.

The securitization primarily consists of investment property loans used for fix-and-flip transactions, aligning with Kiavi's commitment to supporting real estate investors in property renovation and resale. Institutional investors participating in the deal will benefit from a two-year revolving period, enabling them to reinvest principal payoffs and acquire additional newly originated loans.

Barclays Capital played a pivotal role as the sole structurer of the deal, while Nomura Securities International and Performance Trust Capital Partners served as joint bookrunners and co-lead managers. The collaboration of these reputable financial institutions underscores the strength and appeal of Kiavi's securitization program.

Arvind Mohan, CEO of Kiavi, expressed enthusiasm about the additional capital infusion, stating,"This securitization is a testament to Kiavi's ability to attract capital from top-tier investors and our commitment to supporting a broader spectrum of real estate investors in scaling their businesses. "Mohan attributed Kiavi's appeal to institutional investors to its advanced data models, technology platform, and consistent performance track record.

The $300 million securitization follows Kiavi's successful $350 million transaction in March, signaling the lender's sustained momentum and growth trajectory. In the first four months of 2024, Kiavi reported a notable 40% increase in loan originations, with $1.66 billion in fix-and-flip and bridge loans originated compared to the same period in the previous year.

Kiavi's recent expansion into construction financing further diversifies its suite of lending solutions, cementing its position as a comprehensive partner for real estate investors. This strategic move enables the company to cater to a wider range of investment strategies and support the growth of its clients' portfolios.

The successful closure of this $300 million securitization reinforces Kiavi's position as a leading private lender in the residential real estate investment market. With its total issuance surpassing $4.3 billion since 2019 and a consistent track record of performance, Kiavi continues to attract significant interest from institutional investors, fueling its ongoing growth and enabling it to support an ever-expanding community of real estate investors.