Kiavi Closes $300M Rated Securitization, Expanding Residential Loan Capacity
Kiavi has completed a $300 million oversubscribed rated securitization of residential transition loans (RTLs), marking its fourth rated deal and 22nd transaction under the LHOME shelf. Since launching its securitization program in 2019, Kiavi has issued over $6 billion in notes.
The transaction included fully sold A1, A2, and M1 note classes, with the M2 class pre-placed. Featuring a two-year revolving period, the deal allows principal repayments to be reinvested in new loans, creating an estimated $1 billion in additional funding capacity.
“Kiavi’s data advantage, technology platform, and AI-powered processes allow us to provide real estate investors with the fast, reliable capital they need to scale their businesses while delivering consistent risk-adjusted returns to our capital partners,” said Arvind Mohan, CEO of Kiavi.
Morningstar DBRS assigned a credit rating to the deal. Nomura Securities International, Inc. served as the sole structuring agent, with Nomura, Barclays Capital, Inc., and Performance Trust Capital Partners, LLC acting as joint bookrunners and co-lead managers.
In the first four months of 2025, Kiavi originated a record $2.5 billion in loans, up 36% from the same period in 2024, including a monthly high of $730 million in April. The lender recently expanded operations to 13 additional states, now serving 45 states and Washington, D.C.
Securitizations of RTLs, sometimes known as “fix-and-flip” loans or residential bridge loans, have increased in recent years, with several commercial real estate finance firms announcing new deals.
In October 2024, Pittsburgh-based Kiavi announced a $400 million RTL. In August of that year, it closed another $400 million rated RTL securitization. Sherman Oaks, CA-based Genesis Finance, a Rithm Capital company, closed a $450 million rated securitization backed by RTLs, in September. Toorak Capital Partners, Inc. closed the first-ever rated RTL securitization at $250 million in February.
