Toorak Capital alternatives for private lenders

What is Toorak Capital Partners?

Toorak Capital Partners is a capital provider that buys and funds business-purpose real estate loans made by private lenders. Formed in 2016 and headquartered in Tampa, Florida, it says it is not a lender itself and partners with loan originators to fund their loans: “We fund the loan. The lender keeps the customer” (Toorak).

What Toorak and others publish about the business:

• How it works in the U.S. Velocity Financial’s investor presentation describes Toorak U.S. as acquiring funded and closed loans from correspondent partners. The same presentation describes a U.K. table funding channel and a direct origination business, Merchants.
• Products. Bridge, rehab and ground-up loans of up to 24 months, and 30-year rental (DSCR) loans (Toorak).
• History and scale. Toorak was founded in 2016 with backing from KKR. Velocity’s presentation reports $20.3 billion in lifetime funded volume across the U.S. and U.K. as of July 31, 2026 (Velocity Financial).
• Securitization. Morningstar DBRS describes Toorak as a mortgage loan aggregator that partners with third-party originators, and says Toorak Mortgage Trust 2025-RRTL1 was the 11th RTL securitization Toorak has issued, with Toorak as the named servicer (Morningstar DBRS).

What does Toorak require from lenders?

Toorak’s U.S. lender FAQ says a correspondent lender must be able to close loans with its own funds, should be doing at least $15 million a month and should have a company net worth of at least $5 million. Approval takes about four to six weeks and setup costs $10,000. Programs include SFR 1–4 bridge and rehab, ground-up construction, multifamily and mixed-use, and DSCR, and Toorak offers correspondents a short-term gestation line.

The pending acquisition by Velocity Financial

In August 2026, Velocity Financial agreed to acquire Toorak’s operating platform from funds advised by affiliates of KKR, and a separate investment firm agreed to buy Toorak’s existing loan portfolio of about $3 billion. Closing is expected in the fourth quarter of 2026, subject to customary closing conditions, and Toorak is to keep operating under its existing brands and leadership (Velocity Financial, HousingWire, Pacific Coast Business Times).

Last reviewed October 19, 2026, when the deal was described as pending. Confirm current terms with Toorak directly. For how Toorak’s model differs from Roc Capital’s, see Roc Capital vs Toorak Capital.

Why do lenders compare Toorak Capital alternatives?

Lenders compare alternatives because a correspondent program suits lenders that already close loans with their own capital at scale, and not every lender does. Others want the loan funded at closing, want to keep servicing and an ongoing spread, or want more than one capital source while ownership of a program changes.

Correspondent programs are genuinely strong for established lenders: a repeatable takeout at published pricing, institutional capacity backed by rated securitizations, and, at Toorak, a gestation line. The trade-offs are the capital you put in until the loan is purchased and the approval thresholds. A lender doing less than the published monthly volume, or without the capital to close loans first, will usually look at table funding or placement.

What are the alternatives to Toorak Capital?

The alternatives are other loan purchase and correspondent programs, white-label table funding, bank or non-bank warehouse lines, whole loan buyers and forward flow, participations, and direct capital placement. They differ mainly on whether you fund the loan before it is sold, who owns and services it afterwards, and what you keep.

Other loan purchase and correspondent programs

Other aggregators buy closed loans to their own guidelines and pricing. Compare volume and net-worth minimums, repurchase terms and whether servicing is released. See correspondent lending for private lenders.

White-label table funding

A provider funds the loan at closing in your name under its program, so none of your capital goes in. Roc Capital is one example: its program page says the loan is assigned to Roc Capital at closing. See what is table funding?, table funding for private lenders and Roc Capital alternatives.

Bank or non-bank warehouse lines

A line advances part of each loan, and you fund the haircut. You keep the loan and the interest above the line’s cost, with covenants and often guarantees. See the warehouse line alternative.

Whole loan buyers and forward flow

Credit funds and family offices buy closed loans one at a time or commit to a flow under a forward flow agreement. Lender Capital also offers this path for whole loans: you can sell loans you already funded to its capital partners.

Participations and co-lending

You fund part of each loan and a partner funds the rest. See loan participations vs whole loans vs note-on-note. Lender Capital handles whole loans only, never participations: one capital partner buys the entire loan, settled through an escrow agent, and Lender Capital never lends or buys loans with its own money. To sell a whole loan you already funded, see sell your loans.

Direct capital placement (Lender Capital)

Lender Capital is a business-to-business capital platform for private lenders: capital partners fund whole first-lien, business-purpose real estate loans at closing or buy whole loans lenders have already funded. It is not a lender, fund or investment adviser and does not set a lending program; it never lends or buys loans with its own money, and capital partners fund or buy the loans. It works with bridge, fix and flip, ground-up construction and DSCR rental loans.

You apply once and are reviewed on track record, underwriting and licensing. Each loan you submit goes only to capital partners whose criteria it fits, and they see the full file before committing. One capital partner table funds the whole loan at closing and the loan is assigned to it at closing. You keep servicing and the borrower relationship, keep your origination points less the placement fee, and earn a yield spread: price the note above the capital partner’s agreed rate and the difference is yours.

The placement fee follows a published schedule: 1.00% of the loan amount up to $3,000,000 and 0.75% of the amount above that (0.75% and 0.50% for preferred lenders), with a $2,500 minimum, paid at closing from your points and only when a loan funds. Capital partners pay no fees.

A hypothetical example: on a $500,000 bridge loan with 2 points ($10,000), a 12% note rate and a capital partner rate of 10%, you pay a $5,000 placement fee from the points, keep $5,000, and keep a 2% yield spread while the loan is outstanding. The capital partner earns most of the interest, so your spread depends on pricing with enough margin above its rate. Lender Capital is new, so judge it on how it works, not on a track record.

If you already funded a loan, you can also sell it through Lender Capital: a capital partner buys the whole loan. In the lender portal you choose the deal type for a loan you already funded and submit it as a whole first-lien, business-purpose loan with the current balance, payment history, your asking price and whether servicing is released or retained. It goes only to capital partners whose criteria it fits, they review the full file, and the sale settles through an escrow agent. The sale fee is 0.75% of the purchased balance (0.50% for preferred lenders), with a $2,500 minimum, only if the sale closes. See sell your loans.

How do I choose between Toorak and the alternatives?

Start with your capital: if you close loans with your own funds or a line at the volumes a correspondent program asks for, a loan purchase program can give you a repeatable takeout. If you would rather not fund loans first, compare table funding and placement. The full comparison is on capital providers for private lenders.

Use this checklist on any provider, including the ones named on this page. The lender due diligence checklist lists what providers will ask you for in return.

• Who funds at closing, and is the commitment firm before closing?
• Whose name is on the note, and who owns the loan afterwards?
• Whose guidelines and pricing apply, and what happens to a loan outside them?
• What you earn per loan: points, a premium, interest until sale, or an ongoing spread.
• Who services the loan and who the borrower calls after closing.
• Representations, warranties and repurchase obligations, and for how long.
• What approval takes: volume, net worth, setup costs, guarantees, timeline.
• Fees, when they are paid and whether they are owed if a loan doesn’t fund.
• How the capital is sourced and what happens to your pipeline if it tightens.
• Whether you can use other capital sources alongside this one.

Get the answers in writing and have counsel review any agreement. Nothing on this page is legal, tax or securities advice.

Frequently asked questions

What is Toorak Capital Partners?

Toorak Capital Partners is a capital provider formed in 2016 and headquartered in Tampa, Florida. It says it is not a lender and partners with loan originators to fund their loans; its U.S. correspondent program buys loans that approved lenders have closed. Morningstar DBRS describes it as a mortgage loan aggregator.

What are Toorak’s requirements for correspondent lenders?

Toorak’s U.S. lender FAQ says lenders must be able to close loans with their own funds, should be doing at least $15 million a month and should have a company net worth of at least $5 million. Approval takes about four to six weeks and setup costs $10,000.

Is Toorak being acquired?

In August 2026, Velocity Financial agreed to acquire Toorak’s operating platform from funds advised by affiliates of KKR, with closing expected in the fourth quarter of 2026, subject to customary closing conditions. Toorak is to keep operating under its existing brands. As of October 19, 2026 the deal was described as pending.

What are some alternatives to Toorak Capital?

Other correspondent and loan purchase programs, white-label table funders such as Roc Capital, bank or non-bank warehouse lines, whole loan buyers and forward flow agreements, participations, and direct capital placement platforms such as Lender Capital.

Do I need to close loans with my own money to use Lender Capital?

No: with Lender Capital, one capital partner whose criteria the loan fits funds the whole loan at closing, and the loan is assigned to it at closing. You pay a placement fee from your points only when a loan funds. If you have already closed a loan with your own funds, you can also sell it whole through Lender Capital to a capital partner.

Sources

• Toorak Capital Partners, home page
• Toorak Capital Partners, Lender FAQ (US)
• Morningstar DBRS, “Morningstar DBRS Assigns Provisional Credit Ratings to Toorak Mortgage Trust 2025-RRTL1” (February 10, 2025)
• Velocity Financial, Toorak Capital Transaction Overview, investor presentation (August 2026)
• HousingWire, “Velocity to buy Toorak platform, manage $3B BPL portfolio” (August 27, 2026)
• Pacific Coast Business Times, “Velocity acquires Toorak’s operating platform” (August 31, 2026)
• Roc Capital, White Label Table Funding (program page)