Velocity Financial, Inc. has entered into an agreement to acquire the operating platform of Toorak Capital LLC, a lending and asset management business focused on single-family and multifamily loans. Toorak is majority owned by funds advised by affiliates of KKR. The acquisition centers on Toorak’s platform capabilities in originating and managing residential investment and multifamily credit exposure.
In a related move, Toorak has signed separate agreements with an unnamed third-party investment firm for the acquisition of Toorak’s existing loan portfolio. That portfolio totals approximately $3 billion in unpaid principal balance, according to the companies. The arrangement separates the operating platform from the underlying loans, aligning Velocity with the ongoing management of the assets while the third-party investor provides capital for loan ownership.
Under the structure outlined, Velocity will manage the portfolio acquired from Toorak on behalf of the third-party investment firm. Velocity is also expected to enter into agreements to sell future Toorak loan production to the same third-party investor and to other counterparties. This gives Velocity a role in both originating and servicing or managing newly produced loans while connecting them with institutional capital partners.
The combined value of the platform acquisition and the loan portfolio transaction is estimated at approximately $3.2 billion, based on Toorak’s consolidated balance sheet as of June 30. The figure reflects both the scale of the loan book and the embedded value of Toorak’s operating infrastructure, although specific pricing allocations between the platform and portfolio were not disclosed.
Velocity co-founder and CEO Chris Farrar described the transaction as aligned with the company’s growth strategy, emphasizing disciplined expansion and a focus on market segments where demand is viewed as resilient over the long term. He highlighted Toorak’s team and operating platform as complementary to Velocity’s existing capabilities and noted that the combined platform aims to serve a wider range of borrowers and capital partners with greater speed and efficiency.
Following the close of the transaction, Toorak will continue to operate under its existing brands across each of its lending segments. The firm will remain led by founder and CEO John Beacham along with the current management team, preserving continuity in leadership and platform strategy. Toorak will also retain its corporate headquarters in Tampa, maintaining its existing geographic base while transitioning its operating platform ownership to Velocity.
The transaction, spanning both a corporate platform acquisition and the transfer and management of a large residential and multifamily-oriented loan portfolio, underscores ongoing institutional interest in scaled access to housing credit and specialized loan origination platforms.
