Figure Technology Solutions Acquires Kiavi
Figure Technology Solutions has successfully completed its acquisition of the real estate financing firm, Kiavi, marking a significant expansion of its blockchain-based lending marketplace. This merger, finalized on September 1, follows a collaborative agreement reached in June 2025, whereby Figure merged Kiavi’s technology and certain operational assets into its burgeoning capital ecosystem. The total cost of the acquisition amounted to $717 million, with Figure paying around $590 million in cash after adjustments pertaining to Kiavi’s existing cash reserves, debt, and operational expenses.
Kiavi’s Innovative Lending Solutions
Kiavi, known for its innovative lending solutions tailored for residential real estate investors, offers short-term transitional loans known as RTLs, as well as longer-term DSCR loans. The integration of Kiavi into Figure’s operations is anticipated to enhance the cut of residential lending volume, contributing over $7 billion per year, in addition to generating monthly flows estimated at $100 million for Figure’s Democratized Prime platform.
Leadership and Strategic Goals
Arvind Mohan, CEO of Kiavi, will take on the role of chief business officer at Figure and will supervise the incorporation of Kiavi’s lending technology across Figure’s extensive network of over 480 partners. Figure’s CEO Michael Tannenbaum expressed excitement over the acquisition, highlighting it as a key strategy to bolster the company’s presence in the $35 trillion home equity market.
Funding and Financial Growth
The acquisition funding was supported by a previously executed $600 million offering of senior notes, with an interest rate of 8.5% due 2031. This strategic move follows a surge in Figure’s loan growth; in the second quarter of this year, the company’s loan volume reached an impressive $4.3 billion, exhibiting a remarkable year-on-year gain of 77%. Moreover, net income saw a hefty increase of 192%, reaching $90 million.
Focus on Residential Lending
With the closing of this transaction, Figure aims to deepen its foothold in the residential lending sector, particularly focusing on the first-lien mortgage market for loans below the $300,000 mark. Mike Cagney, Figure’s executive chairman, pointed out that their technology streamlines the approval process for smaller mortgages significantly better than conventional methods, which might extend over several weeks.
Future Growth and Partnerships
The merger solidifies Figure’s ambition to enhance its consumer loan marketplace, which has already eclipsed $1.34 billion in volume as of April, spotlighting a growth of 108% from April the previous year. By integrating Kiavi’s assets, Figure expects to increase the share of first-lien offerings in its loan marketplace to over 40% by the end of 2027.
Meanwhile, Sixth Street, the investment firm involved in the acquisition, contributes to an ongoing partnership, which was previously highlighted when they committed $200 million for a joint venture to inject significant liquidity into the non-agency mortgage market. Figure’s decisive steps towards incorporating diverse financial assets into its blockchain infrastructure underscore its forward-thinking strategy within both consumer and institutional lending.
