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Velocity Financial to Acquire Toorak Platform in $3.2 Billion Deal

Velocity Financial to Acquire Toorak Platform in $3.2 Billion Deal

MT newswireMT newswire2026/08/27 11:59
07:59 AM EDT, 08/27/2026 (MT Newswires) -- Velocity Financial (VEL) said Thursday that it agreed to acquire the operating platform of Toorak Capital, while a third-party investment firm will purchase Toorak's existing business-purpose loan portfolio with about $3 billion in unpaid principal balance. The combined platform and portfolio transactions are valued at approximately $3.20 billion, it said. Velocity said the deal will increase its origination scale by 76% and servicing scale by 39%, while expanding its residential lending products and U.K. presence. The transactions are expected to close in Q4 2026, subject to customary closing conditions, and be accretive to 2027 GAAP earnings, it added. Velocity will also manage the loan portfolio acquired by the third-party investment firm.
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