Institutional Capital Pours Into Small Investor Lending With $717 Million Deal
Figure Technology Solutions is acquiring fix-and-flip lender Kiavi for $717 million in a transaction that includes a joint venture with Sixth Street to purchase the accompanying loan portfolio. Figure will take over Kiavi’s technology and operating platforms, while the two firms will jointly manage Kiavi’s existing loan book. Kiavi CEO Arvind Mohan will join Figure as chief business officer when the deal closes. Jefferies Financial Group advised Kiavi, while Barclays Capital advised Figure and Sixth Street.
Kiavi originated more than $7 billion in loans last year to small-scale residential investors, bringing its 13-year total above $30 billion. The lender generated $250 million in revenue last year with over $100 million in EBITDA. Figure, founded in 2018 by former SoFi CEO Mike Cagney, already operates as the largest non-bank home equity lender in the country, with $25 billion in loans on its blockchain-based platform. The company says it expects an unlevered cash payback in less than four years on the acquisition.
Institutional investors have expanded into lending for smaller real estate operators over the past decade, with insurers, sovereign wealth funds and other large capital sources driving originations to $145 billion in 2025. These loans to property flippers and small landlords were once the domain of niche lenders. Figure and Sixth Street entered a previous joint venture in 2025 and plan to continue originating residential-transition loans together after this deal closes. Figure reaffirmed its medium-term target of 60% EBITDA margins.
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