Velocity Financial to Acquire Toorak Operating Platform, Manage $3B Loan Portfolio

Velocity Financial, Inc. has agreed to acquire the operating platform of Toorak Capital LLC, a single-family and multifamily lending and asset management platform majority owned by funds advised by affiliates of KKR. Toorak has also entered into separate agreements with a third-party investment firm to acquire Toorak’s existing portfolio of loans totaling approximately $3 billion in unpaid principal balance.

Additionally, Velocity will manage the portfolio acquired from Toorak on behalf of the third-party investment firm. It will also enter into agreements to sell future Toorak loan production to the third-party firm and other counterparties.

The total value of the platform and portfolio transactions is estimated at approximately $3.2 billion based on Toorak’s consolidated balance sheet as of June 30.

“This acquisition reflects our commitment to scaling responsibly and deepening our presence in segments where we see durable, long-term demand,” said Chris Farrar, co-founder and CEO of Velocity. “Toorak’s exceptional team and platform are highly complementary to what we’ve built, and together we’re positioned to serve a broader set of borrowers and capital partners with greater speed and efficiency.”

Post-closing, Toorak will maintain its existing brands across its respective lending segments, will continue to be led by founder and CEO John Beacham and the current management team and will retain its corporate headquarters in Tampa.