Velocity Financial has entered into a definitive agreement to acquire the operating platform of Toorak Capital, a business-purpose lending and asset-management platform majority owned by funds advised by affiliates of KKR. Toorak also has entered into separate agreements with a third-party investment firm for the purchase of its 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 also will 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
