SCHEDULE: Velocity Financial: SPG Maintains 34.7% Stake

Snow Phipps Group entities reaffirm their significant 34.7% beneficial ownership in Velocity Financial, Inc., with the percentage change driven by an increase in outstanding shares.

Summary

• SPG GP, LLC and affiliated entities (Snow Phipps Group AIV, L.P., Snow Phipps Group (RPV), L.P., Snow Phipps Group (B), L.P., Snow Phipps Group AIV (Offshore), L.P., and SPG Co-Investment, L.P.) collectively beneficially own 13,353,103 shares of Velocity Financial, Inc. Common Stock.
• This represents 34.7% of the Issuer's outstanding Common Stock.
• The percentage is calculated based on 38,438,579 shares of Common Stock outstanding as of July 31, 2025, as reported by Velocity Financial, Inc. in its Form 10-Q filed on August 8, 2025.
• This Amendment No. 4 was filed solely to reflect a change in the reported beneficial ownership percentage due to an increase in the total number of outstanding shares, not due to any acquisition or disposition by the Reporting Persons.
• No transactions in Velocity Financial Common Stock were effected by the Reporting Persons or any other named person in the past 60 days.

Sentiment

Score: 5

Explanation: The filing is neutral, primarily a factual update on beneficial ownership percentage due to a change in the issuer's outstanding shares, with no new strategic actions or financial performance data.

Positives

• Reporting Persons maintain a substantial ownership stake of 34.7%, indicating continued significant investment and potential alignment with long-term company performance.
• The change in reported percentage is due to an increase in the Issuer's outstanding shares, not a reduction in the Reporting Persons' absolute share count, suggesting stability in their holding.

Negatives

• The decrease in percentage ownership from previous filings due to share dilution could slightly reduce the proportional influence of the Reporting Persons, although their absolute share count remains unchanged.

Risks

• Potential dilution of existing shareholder value if the increase in outstanding shares was not accompanied by a proportional increase in company value or earnings.

Future Outlook

NA

Industry Context

This filing is a routine disclosure of a significant shareholder's updated ownership percentage, primarily driven by changes in the issuer's total outstanding shares. It does not provide broader industry trends or competitive analysis.

Stakeholder Impact

• Shareholders: The increase in outstanding shares, which led to a slight dilution of the reporting persons' percentage ownership, could imply a similar dilution for other shareholders if their holdings remained constant. However, the absolute number of shares held by the reporting persons remains unchanged, indicating continued commitment.

Key Dates

Keywords

Velocity Financial, VFI, Schedule 13D, Beneficial Ownership, Snow Phipps Group, Institutional Investor, Shareholder Stake, Common Stock, SEC Filing, Equity Holding