Velocity Financial Inc. agreed to acquire Toorak Capital LLC’s lending and asset management platform for approximately $3.2 billion in a cash transaction, the companies said on Thursday.
The deal includes Toorak’s $3 billion portfolio of business-purpose loans, primarily residential transition, construction, and rental property loans. Toorak, founded in 2016 and majority-owned by funds advised by KKR, has originated nearly 43,000 loans totaling more than $20 billion in cumulative volume since inception. The platform employs about 280 people, including 120 from its U.S. direct origination unit, Merchants Mortgage & Trust Corporation.
Velocity, based in Westlake Village, California, will acquire the entire platform in a 100% cash deal, with closing expected in the fourth quarter of 2026 subject to customary conditions. Toorak will retain its brands, Tampa headquarters, and current management team under founder and CEO John Beacham, who will become an Executive Vice President of Velocity Commercial Capital LLC.
Toorak separately agreed to sell its existing $3 billion loan portfolio to a third-party investment firm. Velocity will enter into agreements with the same firm to manage the acquired portfolio and to purchase future Toorak loan production, as well as sell loans to other counterparties. Barclays Capital Inc. advised Velocity, while Piper Sandler & Co. advised Toorak and KKR on the transaction.
