TLDR:
- Figure’s Kiavi acquisition adds over $7 billion in annual first-lien lending volume to its network.
- Democratized Prime is expected to receive more than $100 million in monthly asset flow after closing.
- Kiavi becomes the first platform scheduled for onboarding through Figure’s new Adaptor AI system.
- A Figure and Sixth Street venture will acquire Kiavi’s balance sheet loans as part of the deal.
Figure Technology Solutions has agreed to acquire real estate lending platform Kiavi in a transaction valued at $717 million. The deal brings one of the largest residential transition loan originators into Figure’s blockchain-based lending network.
Figure plans to integrate Kiavi’s lending operations and asset flow into its tokenized marketplace infrastructure. The acquisition also marks the first planned deployment of Figure’s new AI onboarding product across a large lending platform.
Figure Acquires Kiavi to Expand Blockchain Lending Infrastructure
According to a company press release, Figure will acquire Kiavi’s technology platform and operating business. A joint venture between Figure and Sixth Street will separately purchase loans held on Kiavi’s balance sheet.
Kiavi focuses on financing residential real estate investors. Its products include Residential Transition Loans and Debt Service Coverage Ratio loans used by rental property owners.
The acquisition adds more than $7 billion in annual first-lien lending volume to Figure Connect. Figure said the transaction also contributes over $100 million in monthly volume to Democratized Prime, its blockchain-based funding marketplace.
Figure stated that the addition of Kiavi expands its presence in first-lien lending. The company expects first-lien products to account for more than 40% of consumer loan marketplace volume by 2027.
The company also said the transaction opens access to an estimated $200 billion annual origination opportunity. Figure plans to move that activity onto its tokenized capital markets infrastructure.
Figure Targets AI and Tokenized Asset Growth With Kiavi Integration
The acquisition arrives as Figure continues to push blockchain-based financial infrastructure into traditional lending markets. According to the company, Kiavi assets will become a new source of activity across its tokenized marketplace network.
Figure said Kiavi will become the first platform onboarded through Adaptor, its recently launched AI product. The tool supports agent-to-agent onboarding and standardizes data from different originators.
The company expects the technology to reduce onboarding time and lower operational costs. Figure stated that the process can replace months of manual integration work across lending partners.
Kiavi reported more than $250 million in revenue and over $100 million in EBITDA during the previous year, according to information included in the announcement. The company has spent more than a decade building AI-powered underwriting and property valuation tools.
Following the transaction, Kiavi Chief Executive Arvind Mohan will join Figure’s executive team as Chief Business Officer. Figure said its marketplace infrastructure will support Kiavi’s loan origination, funding distribution, and secondary market activity after integration.
Sixth Street, an existing Figure partner, will participate through the balance sheet acquisition component. The investment firm said it will contribute residential mortgage and private credit expertise as Kiavi joins the Figure platform.