Kiavi Secures $158M to Expand Its Funding Capacity
The real estate space has fluctuated quite a bit over the past couple of years with heightened home prices and increased borrowing costs. As the sector continues to shift, real estate investors are planning their next moves. Kiavi provides financing to property investors, and it just announced a new injection of capital to increase what it can offer them.
Kiavi offers private loans to residential real estate investors. The company’s data and tech-enabled platform aims to grant investors a simpler, faster and more reliable method of accessing the funds they need to scale their businesses. Since its founding in 2014, Kiavi has funded more than $12.3 billion in loans, according to the company.
Now, Kiavi announced a $158 million securitization of residential transition loans, or RTL. The new capital brings its total issuance to $2.75 billion. The deal equips Kiavi with more capital to invest in opportunities to grow its funding capacity.
“Closing this securitization is particularly significant given today’s challenging macroeconomic climate. Rising yields have created an opportunity to introduce the RTL asset class to new securitization investors that were previously priced out of the market,” Arvind Mohan, Kiavi’s COO, said in a statement.
A Kiavi customer could be a real estate asset manager who chooses to invest in their managed properties. They would be able to turn to Kiavi for capital needed to flip old homes to resell them at a higher value.
Over the course of 2022, Kiavi set a new record for itself, funding a total of $4.4 billion in loan volume to more than 5,600 customers, according to the company.
“Securitizations like these not only firmly demonstrate Kiavi’s leadership position in our industry, but also continued confidence in our ability to generate meaningful risk-adjusted returns for investors in the RTL asset class,” Mohan said.
As it continues to grow, Kiavi is hiring for a couple of new roles on its team. The remote opportunities span the company’s marketing and finance teams.