Figure Technology Solutions has announced a definitive agreement to acquire Kiavi, a leading AI-powered lending platform for residential real estate investors, in a transaction valued at $717 million. The deal involves Figure acquiring Kiavi’s technology platform, while a joint venture between Figure and global investment firm Sixth Street will purchase Kiavi’s balance sheet assets. This strategic acquisition unites the number one Residential Transition Loan lender with a premier home equity marketplace, aiming to reshape capital markets.
Strategic Expansion and Market Integration
This acquisition is set to significantly scale Figure’s operations by bringing a $200 billion annual addressable origination opportunity onto its blockchain-native rails. The integration of Kiavi is expected to add over $7 billion in new annual first-lien volume to the Figure Connect marketplace. This move will also contribute more than $100 million in monthly flow to Democratized Prime, Figure’s on-chain warehouse marketplace for lenders and investors.
The transaction strengthens Figure’s focus on the first-lien market, which is substantially larger than the second-lien segment. By incorporating Kiavi’s specialized products, including short-term Residential Transition Loans (RTL) and long-term Debt Service Coverage Ratio (DSCR) loans, Figure projects its consumer loan marketplace volume will exceed 40% first-lien by 2027. This diversification vertically integrates Figure’s product stack and enhances its market position.
Financial Synergies and Technological Advancement
Financially, the acquisition is structured to be high-margin and asset-light, reinforcing Figure’s medium-term EBITDA margin target of 60%. The company anticipates the deal will be accretive to its Earnings per Share and projects an unlevered cash payback in under four years. Kiavi’s strong performance, including over $250 million in revenue and $100 million in EBITDA last year, underscores the financial strength it brings to the combined entity.
Technologically, the deal marks a significant step forward by moving Kiavi’s assets natively onto Figure’s blockchain marketplace. This transition is designed to extract cost efficiencies, reduce operational friction, and maintain a capital-light business model. The integration will also serve as the first use case for Adaptor, Figure’s new AI product that streamlines data onboarding for partners, saving significant time and resources.
Leadership Perspectives on the Merger
Michael Tannenbaum, CEO of Figure, described the transaction as a “pole vault into tokenization” and a key part of the company's mission to move capital markets onto blockchain. He highlighted that adding Kiavi’s capabilities will symbiotically supercharge growth for both their partner network and consumer loan marketplace. This move comes just nine months after Figure's successful initial public offering, signaling aggressive growth.
Arvind Mohan, CEO of Kiavi, stated that the transaction represents a “massive leap forward for the asset class.” He emphasized that combining Kiavi’s industry-leading platform with Figure’s innovative blockchain marketplace will set a new standard for reach, reliability, and execution. Following the deal's close, Mohan will join Figure’s executive team as its new Chief Business Officer, ensuring a smooth integration of leadership.
The deal is also supported by long-standing partner Sixth Street, which is contributing its expertise in residential mortgages and private credit. Michael Dryden, a Partner at Sixth Street, expressed pride in continuing the partnership as Kiavi joins the Figure platform. This collaboration underscores the robust institutional backing and strategic alignment behind the acquisition, promising sustained growth and innovation.
In conclusion, Figure's acquisition of Kiavi marks a pivotal moment in the convergence of real estate finance and blockchain technology. The $717 million deal is poised to deliver substantial scale, financial accretion, and technological innovation by integrating a leading lending platform onto a tokenized marketplace. This strategic maneuver solidifies Figure’s leadership in real-world asset tokenization and positions the combined entity for transformative growth in the capital markets.