Figure Acquires Kiavi for $717M, Forms Venture With Sixth Street

Institutional Capital Targets Small Scale Lending

Figure Technology Solutions’ decision to acquire Kiavi and align with Sixth Street signals a shift in how institutional capital is moving down-market to serve smaller real estate entrepreneurs. Bloomberg reports that Figure, best known for its home equity lending tech, will pay $717M for Kiavi—one of the nation’s most active originators for fix-and-flip and rental property investors. The deal shows larger asset managers’ rising appetite for exposure to residential transition loans, a fast-expanding but historically fragmented market long dominated by private lenders.

The Details

The deal includes two key components. Figure will integrate Kiavi’s technology and operating platforms into its origination suite. Meanwhile, Figure and Sixth Street will acquire and manage Kiavi’s loan portfolio. Kiavi originated more than $7B in residential investor loans during 2025, according to SFR Analytics. The company generated $250M in revenue and more than $100M in EBITDA last year.

After closing, Kiavi CEO Arvind Mohan will join Figure as chief business officer. His move should help maintain relationships with existing clients. Figure expects to recover its investment in less than four years. Jefferies and Barclays advised the parties on the transaction.

Tech-Driven Lending Scales Up

Demand for residential investor loans continues to grow. Annual originations reached $145B in 2025, marking a sharp increase from prior years. Previously, niche lenders dominated the sector. Now, private equity firms, hedge funds, insurers, and sovereign wealth funds are entering the market. They seek stable, asset-backed returns through residential lending platforms.

Figure adds scale through its blockchain-based servicing platform. The company has processed $25B in home equity loans. As a result, partners like Sixth Street gain an efficient channel for origination and portfolio management.

Why It Matters

This acquisition marks a major milestone for the fix-and-flip lending market. Figure combines its servicing infrastructure with Kiavi’s reach among smaller property investors. Together with Sixth Street, the venture gains significant scale in residential transition lending. At the same time, institutions continue searching for yield. Many also want exposure to borrower segments that traditional lenders often overlook. Tight CRE lending conditions have strengthened that trend. Yet improving property market fundamentals have encouraged investors to pursue more specialized lending strategies across real estate sectors. Figure credits Kiavi’s growth to its focus on property cash flows and streamlined underwriting. The platform has already originated $30B in loans historically. That track record supports its competitive position.

Figure also targets a 60% EBITDA margin. The goal reflects confidence in scaling a technology-driven lending platform profitably. For smaller investors, the deal could expand access to flexible financing options. Larger platforms continue consolidating the fragmented non-bank lending market. More broadly, the transaction highlights the convergence of fintech origination and institutional capital. That trend continues to accelerate across residential CRE finance. As investors seek exposure without owning properties directly, similar platform acquisitions may follow. The Figure, Kiavi, and Sixth Street structure could become a blueprint for future deals.

What’s Next

Once closed, Figure and Sixth Street plan to ramp up origination of residential transition loans and expand their footprint among small-scale operators. Arvind Mohan’s move to Figure as chief business officer hints at stable integration and ongoing focus on the core client base. Watch for additional institutional capital entering the space, as more large groups look to partner with or buy technology-enabled lenders able to efficiently underwrite and service loans at scale. Traditional banks and older private lenders may face renewed competition as these tech-driven platforms grow their share of the non-owner-occupied investor loan market.