KKR has increased its investment in Toorak Capital Partners to $250 million from its initial $75 million commitment in 2015. Toorak invests in small balance real estate loans throughout the U.S. and the U.K., including single family rental loans, commercial and residential bridge loans.
NEW YORK–(BUSINESS WIRE)– Toorak Capital Partners (“Toorak”) today announced that KKR has increased its investment in the company to a total of $250 million, after initially committing $75 million in 2016. The investment comes at a momentous time for Toorak as the company recently reached the $1 billion milestone of total loans purchased since inception.
Founded in 2016 by John Beacham, Toorak invests in small balance real estate loans throughout the U.S. and the U.K., including single family rental loans, commercial and residential bridge loans. The company offers a range of efficient capital solutions through a series of loan acquisition and financing programs designed to meet the needs of its lending partners.
John Beacham, CEO of Toorak, said, “With Toorak, we saw an opportunity to provide stable, long-term capital to a fragmented industry where there is a lack of efficient financing alternatives for lenders. Our objective is – and has always been – to offer not only a wide variety of loan programs, but also to provide the highest level of service to our lending partners and borrowers while maintaining a disciplined approach to credit, and we are thrilled to have KKR’s continued support in doing so.”
Dan Pietrzak, Member of KKR Credit, added, “Our new investment is an endorsement of the phenomenal success of John and his team in building a leading real estate loan investment platform. John’s deep background and track record of success in this space has, in a short period, led Toorak to be able to substantially improve financing options in the real estate mortgage market. We are proud of this initial $1 billion milestone for the company and look forward to celebrating many future milestones together.”
For KKR, the investment was primarily funded by KKR Private Credit Opportunities II. Since its launch, Toorak has invested in more than 3,500 loans in 43 US states and throughout England and Wales.
About John Beacham
John Beacham, with more than 20 years of experience across more than $50 billion in transactions, has been a pioneer in the creation of the single family rental asset class. Prior to Toorak, Beacham was the founder and President of B2R Finance (now Finance of America Commercial), where he grew the company to more than $1.0 billion in origination volume and structured and marketed the industry’s first multi-borrower single family rental securitization which won the “CMBS Deal of the Year” award from GlobalCapital in 2015. Before joining B2R, Beacham served as joint head of single-family rental home finance at Deutsche Bank AG where he managed the origination of more than $5.0 billion in single-family rental financings and structured the first single borrower single family rental securitization which won the “Structured Finance Deal of the Year” award from IFR in 2013.
About Toorak Capital Partners
Toorak Capital Partners, is a leading provider of third party capital to the small balance business purpose real estate lending industry in the United States. Toorak recently launched an expansion into the United Kingdom that has been well received by the market. The Company offers a range of efficient capital solutions through a series of loan acquisition programs that are designed to meet the needs of its lending partners. Further information is available at www.toorakcapital.com.
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic manager partnerships that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.