One of the largest transactions in the history of business-purpose lending took center stage during the National Private Lenders Association (NPLA) Member Meeting as industry leaders examined Figure’s acquisition of Kiavi and what it could mean for the future of private lending.
Moderated by Jonathan Hornik (Private Lender Law/ NPLA), the discussion featured Ryan Shanberg (Nomura), Ray Sturm (Blue Lake), Eric Abramovich (Roc Capital), and Ezra Dweck (IceCap Group). Together, they explored whether the acquisition represents the beginning of broader consolidation, how institutional investors are evaluating private lending platforms, and why technology is becoming just as important as loan production.
More Than an Acquisition
The panel agreed that the Figure-Kiavi transaction represents a milestone for the industry because it provides one of the first meaningful public benchmarks for valuing a large-scale private lending platform.
Ryan Shanberg explained that public transactions of this size remain rare, giving lenders and investors valuable insight into how institutional buyers evaluate operating platforms, technology, and lending businesses.
While opinions varied on whether this signals the beginning of widespread consolidation, the transaction clearly demonstrates that institutional investors continue viewing private lending as an increasingly attractive asset class.
Will More Consolidation Follow?
The panel generally agreed that additional transactions are likely—but not necessarily in the form many expect.
Rather than a wave of acquisitions, Ryan Shanberg believes the industry may see more strategic partnerships, minority investments, joint ventures, and platform investments as institutions seek exposure to business-purpose lending.
Ray Sturm noted that Kiavi is a unique company with years of operational development behind it. While similar transactions may occur, they will likely involve lenders with proven scale, infrastructure, and technology rather than becoming commonplace across the industry.
Technology Is Driving Value
One of the strongest themes throughout the discussion was that Figure acquired much more than loan production.
Panelists highlighted Kiavi’s technology platform, underwriting automation, valuation capabilities, operational efficiencies, and data infrastructure as significant strategic assets.
Ray Sturm explained that technology is becoming one of the defining characteristics separating scalable lenders from the rest of the market.
As private lending continues to institutionalize, lenders investing in automation and operational efficiency may become increasingly attractive acquisition targets.
Different Views on Valuation
The panel also debated what the transaction says about valuations.
Ezra Dweck questioned whether technology ultimately commanded the premium many expected and suggested investors continue placing greater emphasis on collateral quality and sustainable production than aggressive leverage or software alone.
Eric Abramovich offered a different perspective, explaining that lenders remain finance companies first. While technology is important, long-term value continues to be driven by profitability, underwriting performance, scalability, and operational execution.
The discussion highlighted that there is still no universal formula for valuing private lending businesses.
Institutional Capital Continues to Grow
Despite differing opinions on valuation, the panel broadly agreed on one point: institutional investment into private lending continues accelerating.
Capital providers are increasingly seeking exposure through acquisitions, warehouse facilities, securitizations, partnerships, and direct investments.
As the industry continues to mature, lenders with disciplined operations, strong technology, and consistent underwriting will likely attract the greatest institutional interest.
Looking Ahead
The Figure-Kiavi acquisition may not trigger immediate industry-wide consolidation, but it clearly marks another step in the evolution of private lending.
The discussion reinforced that institutional capital is growing, technology is becoming a competitive differentiator, and operational excellence will increasingly determine which lenders thrive as the industry continues to mature.
If you are interested in the full memo on this transaction from Private Lender Law, reach out to Amy Kame at [email protected].
