Velocity Financial Inc. agreed to acquire the operating platform of Toorak Capital LLC for approximately $3.2 billion in cash, adding a $3 billion portfolio of business-purpose loans and expanding its presence in residential transition and construction lending.
The transaction covers Toorak’s entire U.S. and U.K. lending operations, including Merchants Mortgage & Trust Corporation, its U.S. direct origination business. Velocity, which will close the deal in the fourth quarter of 2026 subject to customary conditions, plans to integrate Toorak’s 280 employees—including 120 from Merchants—under its commercial capital unit, Velocity Commercial Capital LLC.
Toorak, founded in 2016, has originated nearly 43,000 loans totaling more than $20 billion since inception. Its products include short-term single-family and multifamily transition loans, ground-up construction loans, and long-term rental property loans secured by residential assets. The platform will retain its existing brands and Tampa, Florida headquarters under CEO John Beacham, who will become an Executive Vice President of Velocity Commercial Capital.
Separately, Toorak entered agreements with a third-party investment firm to sell its $3 billion portfolio of business-purpose loans—comprising whole loans and securitized positions—at closing. Velocity will manage the acquired portfolio and retain agreements to sell future Toorak loan production to the firm and other counterparties.
The $3.2 billion valuation is based on Toorak’s consolidated balance sheet as of June 30, 2026. Velocity’s financial advisor for the deal is Barclays Capital Inc., while Piper Sandler & Co. advised Toorak and its majority owner, funds advised by KKR.
