Kiavi Launches Major $300 Million Securitization Milestone
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Kiavi's Significant Securitization Achievement
Kiavi, a prominent tech-enabled lender catering to residential real estate investors, has recently made headlines by closing a prominent $300 million rated securitization of residential transition loans (RTLs). This transaction marks Kiavi's 21st under its LHOME shelf, pushing the total to an impressive $5.8 billion in offered notes since the inception of its securitization program in 2019.
Investor Demand Led to Oversubscription
The latest securitization saw overwhelming demand from institutional investors, resulting in an oversubscription by more than five times. This striking interest included several first-time participants among the investors. The notes comprised four classes: A1, A2, M1, and M2, all successfully sold. The structure of this deal includes a revolving period lasting two years, which permits principal repayments to be reinvested in purchasing newly originated loans, ultimately enhancing funding capacity.
Strengthening Funding Capabilities
Arvind Mohan, Kiavi's CEO, emphasized the significance of this transaction, stating that it provides over $1 billion in funding capacity throughout its lifetime. This increment fortifies Kiavi's capacity to support more real estate investors nationwide in achieving their growth ambitions. The company's innovative and technology-driven approach has contributed to consistent performance and risk-adjusted returns, and this securitization is a continuation of that trajectory.
Credit Ratings and Strategic Partnerships
Morningstar DBRS assigned a credit rating to this transaction, indicative of the confidence in Kiavi's growing stature in the financial landscape. Barclays Capital Inc. functioned as the sole structuring agent while Barclays, Nomura Securities International Inc., and Performance Trust Capital Partners LLC collaborated as joint bookrunners. These strategic partnerships are essential for ensuring that Kiavi continues to thrive in a competitive market.
Record Growth and Future Outlook
The securitization comes on the heels of an exceptional year for Kiavi. In 2024, the company achieved a record origination of $6.5 billion in loan volume, marking a robust 46% increase over the previous year, achieved despite historically low home sales. Kiavi also boosted its customer base to over 5,500, representing a remarkable 30% annual growth. The firm closed five RTL securitizations totaling nearly $2 billion and expanded its product offerings through the introduction of a construction financing solution.
Expanding National Presence in 2025
Kicking off 2025 on a high note, Kiavi has also expanded its operations into 13 additional states, bringing its reach to support real estate investors in 45 states and Washington, D.C. This growth is a testament to Kiavi’s effective strategies and aims to continue providing vital capital solutions to its clients.
About Kiavi
Established with a vision to support residential real estate investors in the U.S., Kiavi has funded over $23 billion in loans, solidifying its position as one of the largest private lenders in the sector. The company, which was formerly known as LendingHome, leverages data and technology to streamline the capital access process, fostering a dependable environment for clients aiming to revitalize the vast aged U.S. housing stock. Kiavi remains dedicated to making move-in-ready homes and rental properties available to millions of Americans.
Frequently Asked Questions
What is the significance of Kiavi's securitization?
Kiavi's $300 million securitization is significant because it enhances their funding capabilities, allowing them to support more residential real estate investors.
Who was involved in the securitization process?
Barclays Capital Inc. was the sole structuring agent, with additional involvement from Nomura Securities International Inc. and Performance Trust Capital Partners LLC as joint bookrunners.
What changes occurred for Kiavi in 2024?
In 2024, Kiavi originated a record $6.5 billion in loans, increased its customer base significantly, and introduced a new construction financing product.
How has Kiavi adapted its services recently?
Kiavi has recently expanded into an additional 13 states, broadening its reach and enabling greater service for real estate investors nationwide.
Why is Kiavi considered a top lender?
Kiavi is deemed a top lender due to its innovative technology, data-driven approach, and ability to offer competitive pricing and reliable capital quickly to investors.
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