Kiavi Closes $350m Rtl Securitization, Nears $7b In Total Issuance

Kiavi, a digital nonbank lender for residential real estate investors, announced Thursday that it closed a $350 million rated securitization of residential transition loans (RTLs).

The transaction marks Kiavi’s sixth rated securitization and 24th deal under its LHOME shelf, bringing its total offered notes to more than $6.8 billion since inception, the company said.

The securitization drew strong demand from institutional investors, including seven first-time participants, and was oversubscribed by more than five times.

The deal includes a two-year revolving period that allows principal payoffs to be reinvested into newly originated loans. Kiavi said that the feature is expected to create about $1.2 billion in additional funding capacity.

“Another successful rated securitization met with this level of demand reinforces the confidence the market continues to place in Kiavi’s unique AI-powered platform,” Arvind Mohan, CEO of Kiavi, said in a statement.

“This transaction unlocks over $1 billion in new liquidity. By seamlessly connecting capital markets with our infrastructure, we continue to deliver the reliable capital, speed, and transparency that investors and builders rely on to create move-in ready homes nationwide — all while generating attractive, risk-adjusted returns for our capital partners,” he concluded.

Morningstar DBRS provided a credit rating on the deal. Nomura Securities International Inc. served as the sole structuring agent. Nomura, Barclays Capital Inc., Deutsche Bank Securities Inc. and Performance Trust Capital Partners LLC acted as joint bookrunners and co-lead managers.

Kiavi said recent product enhancements to its AI-powered platform include an after-repair value and cash-to-close estimator to help investors assess potential returns; an automated document review that extracts and validates borrower data; an AI-driven instant scope-of-work upload tool; expanded mobile draw capabilities that allow investors to upload project photos through a mobile app; and a new construction financing platform with technology-enabled underwriting for ground-up construction and redevelopment projects.

In 2025, Kiavi reportedly originated $7.8 billion in loan volume, up 20% from the prior year. The company also said it closed $1 billion in rated securitizations under the LHOME shelf in 2025, expanded into 17 additional states and became the first nonbank lender to fund more than 100,000 loans to real estate investors.

The company closed a securitization of $300 million in February 2025. At the end of last year, it expanded into Mississippi, New Mexico, Rhode Island and Vermont, ending the year with operations in 49 states.