Velocity Financial, Inc. (NYSE: VEL) announced a definitive agreement to acquire the operating platform of Toorak Capital LLC, a business-purpose lending and asset management platform which is majority owned by funds advised by affiliates of KKR, a leading global investment firm.
Toorak has also entered into separate agreements with a third-party investment firm for the purchase of Toorak’s existing portfolio of business-purpose loans totaling approximately $3 billion in unpaid principal balance across whole loans and loans held in Toorak Mortgage Trust and TRK Trust securitizations.
In connection with the closing of the transactions, Velocity will also enter into an agreement with the third-party investment firm to manage the portfolio acquired from Toorak, as well as agreements to sell future Toorak loan production to the third-party investment 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, 2026.
Toorak provides real estate investors with the capital required to buy, renovate and/or rent residential properties. Since its inception in 2016, Toorak has funded over $20 billion in cumulative volume across almost 43,000 loans.
Toorak’s BPL products include short-term single-family and multifamily residential transition loans ground-up construction loans and long-term rental property loans secured by residential properties.
VEL shares acquired 80 cents, or 4.5%, Thursday to $18.49.
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