This extraction is sourced from Velocity Financial's 8-K press release exhibit filed with the SEC on August 27, 2026, announcing the signed definitive agreement. The deal was still pending at the time of this filing, with Velocity expecting the acquisition to close in the fourth quarter of 2026 subject to customary closing conditions.
Barclays Capital Inc. served as exclusive financial advisor to Velocity, the acquirer, while Piper Sandler & Co. served as exclusive financial advisor to both Toorak and its majority owner KKR. Each bank held a sole, lead advisory mandate on its respective side of the transaction.
On the legal side, Simpson Thacher & Bartlett LLP and Morgan, Lewis & Bockius LLP served as legal counsel to Velocity, while Dechert LLP served as legal counsel to both Toorak and KKR.
The acquisition of Toorak's operating platform by Velocity was structured as a 100% cash purchase, encompassing Toorak's direct U.S. origination business (Merchants Mortgage & Trust Corporation) and its lending operations in both the United States and the United Kingdom. Toorak, founded in 2016 with KKR backing, had funded over $20 billion in cumulative loan volume across nearly 43,000 loans since inception; its approximately 280 employees, including Founder and CEO John Beacham, were expected to continue with the business, which will become a subsidiary of Velocity Commercial Capital, LLC.
The press release does not disclose the specific cash purchase price allocated to the operating platform acquisition alone, separate from the $3.2 billion combined platform-and-portfolio valuation, nor does it name the third-party investment firm purchasing Toorak's existing loan portfolio or disclose financial advisory fees paid to Barclays or Piper Sandler.