- Figure to acquire Kiavi’s technology and operating platform; a joint venture between Sixth Street and Figure to acquire Kiavi’s balance sheet assets.
- With this transaction, the #1 Residential Transition Loan (“RTL”)1 lender joins the leading home equity marketplace.
- Moving Kiavi assets natively onto blockchain marketplace rails extracts cost efficiencies, slashes friction, and maintains capital light business model and high margins.
- Acquisition adds over $7 billion in new annual first-lien volume to Figure Connect marketplace and more than $100 million monthly to Democratized Prime.
- Asset class will be the first use case for fully agentic, agent-to-agent onboarding featuring Adaptor, Figure’s newest AI product.
Figure Technology Solutions, Inc. (“Figure,” Nasdaq: FIGR; OPEN: FGRS), the blockchain-native capital marketplace for the origination, funding, sale, and trading of tokenized assets, today announced a definitive agreement to acquire Kiavi, an AI-powered lending platform for residential real estate investors. The transaction includes the purchase of Kiavi’s balance sheet assets by a joint venture between Figure and Sixth Street, a leading global investment firm, which is buying loans off Kiavi’s balance sheet. The total transaction purchase price is $717 million.
Kiavi’s AI-powered platform provides real estate investors with the capital they need to buy, renovate and/or rent investment properties at scale. Kiavi’s products include short-term Residential Transition Loans (“RTL”) and long-term rental property loans known as Debt Service Coverage Ratio (“DSCR”) loans, a growing product within Figure’s existing portfolio. This transaction represents a $200 billion annual addressable origination opportunity that will be brought onto Figure’s tokenized rails.
Acquiring Kiavi supports four objectives:
- Tokenized Asset Scale: Advances Figure’s mission of modernizing capital markets by bringing all assets onto blockchain. Figure currently accounts for 75% of real-world asset tokenization, and Kiavi is expected to instantly add $7 billion in annual volume, including over $100 million of monthly flow on Democratized Prime, Figure’s blockchain-native warehouse marketplace where lenders are matched with investors in search of institutional-grade returns.
- Bolsters First-Lien Focus: Further vertically integrates Figure’s product stack into the company’s first-lien segment, which grew approximately 2.5 times year-over-year in 2025. The first-lien market is 25 times larger than second-lien, and with Kiavi, Figure’s consumer loan marketplace volume is projected to reach 40%+ first-lien for the full year 2027.
- Figure Reinforces 60% Medium-Term EBITDA Margin Target. The Kiavi platform that Figure is purchasing will be high-margin and asset-light. With the combined businesses’ shared operational strengths and expanded scale, Figure is reaffirming its margin target and expects both accretion to Earnings per Share and an unlevered cash payback in less than four years.
- Agent-to-Agent Adaptor Onboarding: Adaptor, Figure’s newest AI product, supports Agent-to-Agent onboarding to impose uniformity to disparate originator data schemes across all asset types in Figure Connect and Democratized Prime, saving partners months’ worth of time and resources when onboarding. Kiavi assets will be Adaptor’s first use case.
“Figure is relentless in our pursuit of moving the capital markets onto blockchain rails, and nine months past our successful IPO, this Kiavi transaction is a further pole vault into tokenization, first-lien diversification and our agentic AI platform,” said Michael Tannenbaum, Figure CEO. “Adding Kiavi’s RTL and DSCR capabilities into our partner network will symbiotically supercharge their growth and the growth of our consumer loan marketplace.”
“For the past 13 years, Kiavi has been focused on powering our data flywheel and proving what’s possible when technology and industry expertise converge,” said Arvind Mohan, CEO of Kiavi. “This transaction represents a massive leap forward for the asset class. With Kiavi’s industry-leading platform powered by Figure’s innovative blockchain marketplace, we have the opportunity to deliver an entirely new – and unmatched – standard of reach, reliability, and execution.” Following the deal close, Mohan will join Figure’s executive team as Chief Business Officer.
Like Figure, Kiavi has benefited from strong U.S. housing fundamentals, an aging housing stock that demands investment, and the opportunity for technology to solve manual origination processes and rigid capital markets. Last year was a record-breaking year for Kiavi, with over $250 million of reported revenue and over $100 million in reported EBITDA.
Figure combines the high-quality, structured data of blockchain as an infrastructure layer with custom-built AI that acts as a decision layer. Kiavi similarly specializes in AI-powered decisioning on large, unique data sets, including its proprietary post-renovation home value engine and document review technologies.
Figure’s AI-enabled marketplace infrastructure will facilitate Kiavi’s origination flow, loan trading counterparties, and funding distribution, which will be integrated materially faster and at lower operational cost than traditional financial infrastructure platforms, and is reflected in the reaffirmed 60% EBITDA margin target. This infrastructure creates scalability and margin advantages as additional asset classes and originators are brought onto the network.
“As long-standing partners of Figure, we are proud to continue working together as Kiavi joins the Figure platform,” said Michael Dryden, Partner and Head of Asset Based Finance at Sixth Street. “We are pleased to be contributing our residential mortgage and private credit expertise to support Kiavi’s growth as a leading originator.”
“Blockchain is a big idea, but the on-chain capital markets are in their infancy. Figure needs to make bold moves to bring entire asset classes on chain,” said Mike Cagney, Figure Co-Founder and Executive Chairman.
To learn more, visit Figure.com.
Webcast Information:
Figure will host a conference call and webcast today, June 10 at 8:30 a.m. Eastern Time, to discuss this transaction. A link to the live discussion and accompanying presentation will be made available on the Company’s investor relations website at https://investors.figure.com/. A replay will also be made available following the discussion at the same website.
Advisors:
Barclays Capital Inc. served as exclusive financial advisor to Figure and Sixth Street, and Jefferies LLC served as exclusive financial advisor to Kiavi. Latham & Watkins served as legal counsel to Figure, Wachtell, Lipton, Rosen & Katz served as legal counsel to Sixth Street and Wilson Sonsini Goodrich & Rosati served as legal counsel to Kiavi.
