Figure Technology Solutions, Inc. has entered a definitive agreement to acquire Kiavi, an AI-powered lending platform for residential real estate investors, for a total transaction purchase price of $717 million. The transaction structure involves Figure acquiring Kiavi's technology and operating platform, while a joint venture between Figure and Sixth Street will acquire Kiavi's balance sheet assets. This strategic move is designed to integrate Kiavi's assets natively onto Figure's blockchain marketplace rails, extracting cost efficiencies and maintaining a capital-light business model with high margins.

The acquisition is projected to add over $7 billion in new annual first-lien volume to the Figure Connect marketplace and more than $100 million monthly to Democratized Prime, Figure's blockchain-native warehouse marketplace. Kiavi's products include short-term Residential Transition Loans (RTL) and long-term rental property loans known as Debt Service Coverage Ratio (DSCR) loans. This transaction represents a $200 billion annual addressable origination opportunity that will be brought onto Figure's tokenized rails.

Strategic Objectives and Financial Impact

The acquisition supports four primary objectives for Figure. First, it advances the mission of modernizing capital markets by bringing all assets onto the blockchain, instantly adding $7 billion in annual volume. Second, it bolsters Figure's first-lien focus, vertically integrating its product stack into a segment that grew approximately 2.5 times year-over-year in 2025. The first-lien market is 25 times larger than the second-lien market, and with Kiavi, Figure's consumer loan marketplace volume is projected to reach 40%+ first-lien for the full year 2027.

Third, Figure is reinforcing its 60% medium-term EBITDA margin target. The combined businesses' shared operational strengths and expanded scale are expected to drive accretion to Earnings per Share and an unlevered cash payback in less than four years. Fourth, the asset class will serve as the first use case for Figure's newest AI product, Adaptor, which supports fully agentic, agent-to-agent onboarding to impose uniformity to disparate originator data schemes.

Executive Commentary and Market Position

"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. He added that adding Kiavi's RTL and DSCR capabilities into the partner network will symbiotically supercharge growth.

Arvind Mohan, CEO of Kiavi, highlighted that the transaction represents a massive leap forward for the asset class. Following the deal close, Mohan will join Figure's executive team as Chief Business Officer. Last year was a record-breaking year for Kiavi, with over $250 million of reported revenue and over $100 million in reported EBITDA.

Transaction Details and Advisors

The transaction leverages strong U.S. housing fundamentals and the opportunity for technology to solve manual origination processes. Figure's AI-enabled marketplace infrastructure will facilitate Kiavi's origination flow, loan trading counterparties, and funding distribution at lower operational costs. Barclays Capital Inc. served as exclusive financial advisor to Figure and Sixth Street, while 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.