SCHEDULE: Beach Point Capital Boosts Velocity Financial Stake to 17.9%

Beach Point Capital Management LP and its general partner, Beach Point GP LLC, have disclosed a 17.9% beneficial ownership stake in Velocity Financial, Inc., including shares and call options.

Summary

• Beach Point Capital Management LP and Beach Point GP LLC reported beneficial ownership of 6,949,566 shares of Velocity Financial, Inc. common stock.
• This represents 17.9% of the outstanding common stock, based on 38,900,030 shares as of October 31, 2025, as reported in the Issuer's quarterly report on Form 10-Q filed on November 7, 2025.
• The ownership includes 5,995,466 shares directly held by clients and 954,100 shares underlying call options exercisable within 60 days.
• Beach Point Capital acts as an investment adviser to clients who own these securities, while Beach Point GP is the sole general partner of Beach Point Capital.
• Both reporting persons disclaim beneficial ownership, stating the securities are owned by their clients.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive signal, as a significant institutional investor has increased or maintained a substantial stake, including call options, suggesting a bullish outlook on Velocity Financial, Inc.

Positives

• A significant institutional investor, Beach Point Capital Management, holds a substantial stake, potentially indicating confidence in Velocity Financial, Inc.
• The inclusion of call options suggests a bullish outlook on the stock's future performance from the reporting persons.

Future Outlook

NA

Management Comments

• Beach Point Capital, an investment adviser registered under Section 203 of the Investment Advisers Act of 1940, furnishes investment advice to the Clients.
• In its role as investment adviser, Beach Point Capital possesses voting and investment power over the shares of Common Stock of the Issuer described in this schedule that are owned by the Clients, and may be deemed to be the beneficial owner of the shares of Common Stock of the Issuer held by the Clients.
• However, all securities reported in this schedule are owned by the Clients. Beach Point Capital disclaims beneficial ownership of such securities.
• Beach Point GP is the sole general partner of Beach Point Capital. As a result, Beach Point GP may be deemed to share beneficial ownership of the shares of Common Stock of the Issuer held by the Clients. Beach Point GP disclaims beneficial ownership of such securities.
• By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11.

Industry Context

StockSavvy.ai notes that a significant stake by an investment adviser like Beach Point Capital Management in a financial services company such as Velocity Financial, Inc. can signal institutional confidence. This type of disclosure is common for active investment funds building positions in companies they believe are undervalued or have strong growth prospects within the specialized finance sector.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional stake could be viewed positively, potentially increasing investor confidence and attracting further institutional interest.
• Management: Management may perceive this as a vote of confidence, but also as increased scrutiny from a large shareholder.

Next Steps

• Beach Point Capital Management LP and Beach Point GP LLC will continue to monitor their investment in Velocity Financial, Inc.
• Future amendments to this Schedule 13G will be filed if there are material changes to their beneficial ownership.

Key Dates

Recommendation

While the significant stake by Beach Point Capital Management, including call options, suggests institutional confidence and a potentially bullish outlook, this filing is purely a disclosure of ownership and does not provide new fundamental information about Velocity Financial's operations or financial performance. Therefore, a "hold" recommendation is appropriate for existing investors, while potential investors should conduct further due diligence beyond this ownership disclosure.

Keywords

Velocity Financial Inc., Beach Point Capital Management, Beach Point GP LLC, Schedule 13G, Beneficial Ownership, Common Stock, Institutional Investor, Velo, Financial Services, Investment Adviser, Call Options