Key Takeaways:
Figure agreed to buy Kiavi for $717M, adding AI-powered real estate lending technology.Figure expects $7B+ annual loan volume and targets 40%+ first-lien share by 2027.Sixth Street backs the deal as Figure expands tokenized lending via Figure Connect.The transaction values the acquisition at $717 million. Under the structure, Figure will acquire Kiavi’s technology and operating platform, while a joint venture between Figure and Sixth Street will purchase Kiavi’s balance sheet assets.
Kiavi is a major lender in residential transition loans (RTLs), which real estate investors use to buy, renovate, or rent properties. It also offers debt service coverage ratio loans (DSCR), a product already growing within Figure’s portfolio.
Adding Kiavi’s RTL and DSCR capabilities into our partner network will symbiotically supercharge their growth and the growth of our consumer loan marketplace.
Kiavi Adds Scale to Figure’s First-Lien StrategyThe deal will also serve as the first use case for Adaptor, Figure’s new AI product for agent-to-agent onboarding. Adaptor is designed to standardize different originator data formats across Figure Connect and Democratized Prime, reducing onboarding time for partners.
Kiavi CEO Arvind Mohan said the transaction represents a major step for the asset class. After the deal closes, Mohan will join Figure’s executive team as chief business officer. He remarked:
Kiavi reported more than $250 million in revenue and over $100 million in EBITDA last year. The company uses AI for real estate lending decisions, including post-renovation home value estimates and document review.
Sixth Street, a longtime Figure partner, will support the transaction through the joint venture buying Kiavi’s loans.
