Kiavi, a private lender to residential real estate investors, has closed its second rated securitization of residential transition loans this year.
This time, Kiavi closes a $400 million rated securitization of residential transition loans.
It’s been a banner year for Kiavi thus far. Through the third quarter, the firm originated nearly 15,000 loans totaling $4.6 billion, a 44.5% increase over the same period last year.
This is Kiavi’s 20th transaction under its LHOME shelf and its fifth of 2024.
In total, the company has issued more than $5.5 billion in offered notes since it began its securitization program in 2019 – about $1.9 billion in 2024 alone.
Due to significant interest from a broad set of institutional investors, including several first-time investors, the transaction was upsized and oversubscribed. The offered notes are in four classes, A1, A2, M1, and M2, all of which were sold.
Consistent with prior LHOME transactions, the deal includes a two-year revolving period, during which principal payoffs can be reinvested to purchase additional newly originated loans.
“We are ecstatic to close our 20th securitization in five years, and our fifth in 2024. This milestone is a testament to Kiavi’s strong track record of performance, which has helped us build and grow reliable institutional demand for Kiavi’s RTL assets since 2019,” says Arvind Mohan, CEO of Kiavi, in a release. “With the advent of rated securitizations, we’re seeing demand from a wider set of institutional investors, including a number of first-time investors. We look forward to putting this capital to work by helping our customers quickly and easily unlock the capital they need to scale their businesses.”
Morningstar DBRS provided a credit rating on the deal. Nomura Securities was the sole structuring agent.
Nomura, Barclays Capital, Inc. and Performance Trust Capital Partners were joint bookrunners and co-lead managers on the transaction.