Kiavi, a prominent private lender specializing in residential real estate investment, has closed a significant $300 million unrated securitization of residential transition loans (RTLs), marking its 17th such transaction since launching its securitization program in 2019. The securitization, announced on Friday, garnered substantial interest from institutional investors.
The loans bundled in the securitization primarily cater to investment property loans utilized for fix-and-flip transactions, reflecting Kiavi’s commitment to facilitating real estate investors’ endeavors in property renovation and resale. This latest deal brings Kiavi’s total issuance to over $4.3 billion, highlighting its sustained presence and expertise in the market.
Institutional investors participating in the transaction will benefit from a two-year revolving period, allowing them to reinvest principal payoffs to acquire additional newly originated loans, a feature consistent with previous transactions facilitated by Kiavi.
Barclays Capital played a pivotal role as the sole entity responsible for structuring the deal, with Nomura Securities International and Performance Trust Capital Partners serving as joint bookrunners and co-lead managers. The collaboration among these financial entities underscores the robust investor confidence and market recognition garnered by Kiavi’s offerings.
Arvind Mohan, CEO of Kiavi, expressed enthusiasm about the additional capital infusion, emphasizing its role in fueling the company’s continued expansion and its ability to support 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, which position the company as a preferred provider of RTL assets.
This latest securitization follows Kiavi’s successful $350 million transaction in March, signaling the lender’s sustained momentum and growth trajectory. Additionally, Kiavi reported a notable uptick in loan originations, with $1.66 billion in fix-and-flip and bridge loans originated in the first four months of 2024, representing a significant 40% increase compared to the same period in the previous year.
Furthermore, Kiavi recently expanded its offerings to include construction financing, further diversifying its suite of lending solutions and cementing its position as a comprehensive partner for real estate investors navigating various property investment strategies.