Investment property lender Kiavi closes $300M securitization

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Kiavi, one of the nation’s largest private lenders for residential real estate investors, closed a $300 million unrated securitization of residential transition loans (RTLs), the company announced on Friday. 

The loans bundled in the securitization were mostly investment property loans used for fix-and-flip transactions. This securitization marked Kiavi’s 17th such transaction and elevated the company’s total issuance to more than $4.3 billion since it launched its securitization program in 2019. 

The deal drew significant interest from institutional investors. Consistent with prior transactions, investors will benefit from a two-year revolving period during which they can reinvest their principal payoffs to purchase additional newly originated loans.

Barclays Capital was the sole entity responsible for structuring the deal. Barclays, Nomura Securities International and Performance Trust Capital Partners were joint bookrunners and co-lead managers on the transaction.

“This additional capital fuels our continued growth, enabling us to help even more real estate investors scale their businesses,” Arvind Mohan, CEO of Kiavi, said in a statement. “Because of our advanced data models, technology platform, and consistent track record of performance, we continue to see significant institutional demand for Kiavi’s RTL assets.”

The deal followed on the heels of a $350 million securitization by Kiavi in March. The lender also reported that it originated $1.66 billion in fix-and-flip and bridge loans in the first four months of 2024, a 40% increase over the same period in 2023, and it recently expanded into construction financing.